First time house buyer questions while close to switching jobs
Tc: 175k, yoe: 5, single in late 20s Buying in Eastside close to I90 since I might be switching to Amazon in a month or so. My main goal is to save rent (around 1900), and I have cash sitting around for down payment. Some questions: 1. Should I stay at Amazon for a bit and then buy a house instead of doing it before? Rates are very good right now and I may not have enough time at a new job for house hunting etc. 2. 2br vs 3br? 2br are far cheaper around 450k (around 1200 sqft) and 3 br 650k for 1400sqft (old, not remodeled), 750-850 for slightly bigger and/or remodeled 3. Good idea to buy now or wait? What if there is a recession with the trade war, etc.? Market has been cooling off and Zillow/redfin predictions say prices will go down by about 2% next year for most houses I look at. On the other hand, stock prices could go down even more so maybe a good idea to sell and put in real estate?
^Also ongoing falling interest rates will keep the housing market depressed until rates bottom. That is when demand (and prices) will start picking up again due to lower debt cost and no further prospect of getting it even lower. There is also remote possibility of fed going ZIRP and helicopter money like in Europe. Until then prices are not likely to go up and may even drop further some. Rent might still be overall cheaper option for now
Hmm, but how would you know when it has bottomed? Rates seem to be around 3.625 for 30 year fixed and 2.75 for 7/1 arm, which sounds cheaper than before.
In September another fed rate drop Is expected, potentially big one. That should push mortgage rates down somewhat as well.
It is better to buy when you are in a job for a while than with a new company. If <2 years in current company they ask lot of paper work. Again you can still get loan, but it will go easier with old company
You need to close the mortgage before switching companies if you want to keep the process smooth and easy. If you've been at the current job for 2+years, you could even include the annual bonus as part of your income because you can show history, and that's unlikely at a new job. And importantly, don't switch before closing if you've started the process, or just wait until you start the new job before applying for mortgage. A job switch during closing will cause all kinds of problems
That location is going to be a brutal commute. Try N or NE of the city. I would wait for a recession to buy and stay out of the City of Seattle.
Like Kirkland? From the places I'm looking at (close to Eastgate p&r), it would take me 35min by car only, 45min mixed mode (drive to p&r and then take bus), 1 hour bus only. All in rush hour to reach by 9.30am on weekday.
I've been waiting for recession for 2 years sitting on a pile of cash. Technically lost money...