Just need reassurance

[skives]

Earlier this year we looked at a house that we loved but it had an offer and it went through. A few days ago a new house which is exactly like the one we looked at earlier this came on the market. Apparently the builder built a few of these homes in the area. It's $113,900 listed but we have $16,000 in student loans we are trying to pay off. Should be paid off by next summer. We have $9,150 saved up to date for it. That's all our savings. Just want to hear if we are doing the right thing by waiting till we pay that last debt off or should we take a chance since we know this house it what we love?

[bjl584]

I'd buy when ready financially. Not before. The fact that you posted this question tells me that you have some doubt as to whether or not this is a good idea. It's probably best to wait. One of the biggest mistakes that people make is falling in love with a house, or a car, or any other inanimate object.

[feh]

I'd buy when ready financially. Not before.

+1

There are other houses out there for you to fall in love with at a later time.

[ua_guy]

I think you're doing the right thing by waiting.

All your cash saved would likely go to the house purchase in the form of a partial/minimal downpayment, loan origination fees, appraisal fees, inspection, the cost of physically moving yourselves in, etc. Based on what you've stated, you'd have no money left, AND you have existing debt that must be paid, along with a new mortgage payment. I'd be surprised if you could be underwritten for a mortgage in your current state.

Nuke the student debt. Try to save up at least 20% down payment. And, have 6 months of expenses as cash saved in the bank.

[snafu]

I admire your plan to rid yourself of that SL as quickly as possible. It's truly in your interest to have at least $ 1,000. liquid in a savings account for those things that unexpectedly go awry. If you can add extra payments to your regular SL payment with clear instruction that it be applied directly to the principal, you will save yourself even more interest and pay it off faster.

It's truly in your interest to save up 20% for a downpayment as the required mortgage insurance for less than 20% down payment is really expensive for zero benefit to yourselves. Are there any changes to spending you'd be willing to make for the short term to get you into the house you desire? I hope you'll keep current with the builder and let him know of your interest.

[Retired To Win]

I think you're doing the right thing by waiting.

All your cash saved would likely go to the house purchase in the form of a partial/minimal downpayment, loan origination fees, appraisal fees, inspection, the cost of physically moving yourselves in, etc. Based on what you've stated, you'd have no money left, AND you have existing debt that must be paid, along with a new mortgage payment. I'd be surprised if you could be underwritten for a mortgage in your current state.

Nuke the student debt. Try to save up at least 20% down payment. And, have 6 months of expenses as cash saved in the bank.

Yes, that's the ticket.

Skives, imagine what would happen if you sank all your savings in a house purchase, obligated yourself to a whole new set of monthly payments, and then some financially bad and unexpected thing happened? And you sitting there, naked as a jaybird with no emergency reserves? How would you pay the mortgage then?

WAIT.