NBR question. WWYD

AmySmolos · November 2013

DH and I have lived with my parents for almost two years while DH finishes school. He's done in May but the time has come for us to move now. We lived with my parents to not take out student loans because I have enough of them. We are going to borrow money from DH mother to move out because on my salary with daycare it just isn't feasible to pay rent. Rent around here is more than mortgage payments for the most part. We were planning to buy once dh graduated in May so my question is this: is it completely dumb to even think if buying something now instead of renting? I can't get over how much a two bedroom apartment is and it makes me think let's just buy a house not live in a crapy apartment. We wouldn't be able to spend as much obviously then we would when he's done with school but there are a lot of inexpensive homes around that would be less then renting an apartment. Thoughts?

ccam · November 2013

Guess it all depends - do you have money for a down deposit and closing fees? Will you guys get approved for a mortgage and for the amount that will allow you to buy where you want to? Even if a mortgage payment would be less than rent, it's all about being able to get to that point in the first place.

AmySmolos · November 2013

I think we could get approved as I've been approved before for a loan. We would start there and just see what's out there. The problem is places for rent are going fast and keep rising so we don't want to miss something if buying doesn't work out. I will contact a realtor I know today for more info and guidance I guess I'm just worried because we would be using a loan from MIL to pay mortgage until dh graduates and that seems weird to me. We would use that money for rent but with buying something it just seems odd. I'm just stressed.

LindsayDesigner · November 2013

Even the best houses have hidden expenses. Why do you need to move now? Can't you stick it out until May?

amaite · November 2013

I think it's crazy to take out a mortgage knowing you'll be borrowing money from someone else to pay it each month. I don't think a bank would even give approval in such a situation. Like LD said, I would try to stick it out longer with your parents. Or, what about getting a 1 bedroom apartment? Would that be more affordable or would you still need to borrow money each month? Does your husband already have a job lined up for May? Remember, with a house you'll also have increased utility costs, taxes, and insurance. And that doesn't even take into account the maintenance problems that will inevitably occur.

AmySmolos · November 2013

Thanks everyone. No we can't stay longer with my parents. It's time to move for everyone's sake. They have helped us out but we can't stay there any longer. I think it would kill any hope of a relationship with my dh and them on the future.

I guess the only reason I was thinking maybe buy a cheap home now is due to we have to borrow money form mil to pay rent anyway so either rent or mortgage would be borrowed money. Our debt to income ratio isn't bad really the problem is child care costs us a fortune- up to $250/week. That's where the money goes. We will be able to cut that cost though because mil is moving down and wants to watch ds a few times a week which will reduce the cost a lot. I think I will prob just rent because I'm too uneasy to think of buying at this point as there are too many unknowns. It just sucks to know we are so close but now we will have debt to pay back to mil and no house.

BatDaughter4Eva · November 2013

Apartments do suck. Are there any small houses in the market for rent? Rent to own? There are a lot of foreclosed homes around me. The company that owns my house buys them, fixes them up, and rents them out. Long term, or as vacation homes.

CrazyDaisy8 · November 2013

I have to agree rent would probably be the best option. If you buy something cheap now, shortly down the road you may regret getting a house that is not in great shape or not in your ideal area. With renting, you would be able to take your time looking for the house you want to eventually buy and not make a rushed decision. I hope whatever happens will be a great decision!

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