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Okay so I got into a discussion last night with DH's best friend, so yes I know a lot about his finances. We discuss buying homes a lot. He's finally ready to buy a home. There are a lot of factors at play but FWIW, we won't include them. The main questions which I don't know the pros and cons for are
1. If he buys a home now, planning on getting married in January 2014 and getting pregnant asap. So in theory in 5-6 years they could be starting school. Should he buy in a good school district (suburbs) with the thought that he won't have to move, or should he buy where he wants to live (the city) but the schools are not good period.
-he wants to know do you think the higher interest rate will keep home prices down?
-right now home prices are skyrocketing where we live, the market is HOT. Places are being bought the first weekend and above asking and in bidding wars.
-would it be a lateral move in 5 years or will the closing costs and purchasing costs eat away at any benefit of buying twice in 5 years?
2. Should he buy a home he can grow into like 3 bd in the suburbs or buy a 1 or 2 bd in the city?
3. I suggested he get his preapproval done, he thinks he can afford $500k but I'm not sure he can qualify for that much. His fiancee lives on the West Coast and will move to the East Coast after they get married. But he isn't sure how to use her current income to qualify for a mortgage. will that work?
Before you say they shouldn't buy a home together before marriage, normally I'd agree but there are unusual circumstances that it's okay. trust me it's going to happen and they won't live together before marriage.
So help with pros and cons. should he buy in city or subrubs?
1. If he buys a home now, planning on getting married in January 2014 and getting pregnant asap. So in theory in 5-6 years they could be starting school. Should he buy in a good school district (suburbs) with the thought that he won't have to move, or should he buy where he wants to live (the city) but the schools are not good period.
-he wants to know do you think the higher interest rate will keep home prices down?
-right now home prices are skyrocketing where we live, the market is HOT. Places are being bought the first weekend and above asking and in bidding wars.
-would it be a lateral move in 5 years or will the closing costs and purchasing costs eat away at any benefit of buying twice in 5 years?
2. Should he buy a home he can grow into like 3 bd in the suburbs or buy a 1 or 2 bd in the city?
3. I suggested he get his preapproval done, he thinks he can afford $500k but I'm not sure he can qualify for that much. His fiancee lives on the West Coast and will move to the East Coast after they get married. But he isn't sure how to use her current income to qualify for a mortgage. will that work?
Before you say they shouldn't buy a home together before marriage, normally I'd agree but there are unusual circumstances that it's okay. trust me it's going to happen and they won't live together before marriage.
So help with pros and cons. should he buy in city or subrubs?
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