Taking the plunge

[sd_fb]

Hello,

First of all, this is a wonderful forum and I’ve learned many useful things over the years.
I thought I would write to this forum and seek some advice regarding buying a house for the first time.

We are both in early 30’s with one kid in daycare and have been renting all these years.

Our combined income is 180K. We have around 130K in cash, 150K in 401K and 20K in immovable funds. We dont have any debts but occasionally have to help our families. Our kid’s daycare cost around 1000$ per month.

We think 560-630K house would be a good target with 20% down to avoid PMI. But that would leave us with no cash.

Our question is should we wait for another 1 year to be comfortable with putting down 20% down payment? or should we take a loan from our 401K and put down 10-15% as the down payment? Is that advisable? or just pay the PMI and not take a loan from our 401K

We are thinking of buying a townhome in carmel valley (proximity to work) or a house in Penasquitos (bigger space etc)

Your suggestions are appreciated
Thanks!

[ljinvestor]

Read the active forum on “How shall we buy our first house”

Why not find a house for $520k or less and put 20% down. Then you don’t have to worry about PMI or 401k loan. Build savings back up by only contribute to 401k up to company match.

[ljinvestor]

Read the active forum on “How shall we buy our first house”

Why not find a house for $520k or less and put 20% down. Then you don’t have to worry about PMI or 401k loan. Build savings back up by only contribute to 401k up to company match.

[ljinvestor]

Read the active forum on “How shall we buy our first house”

Why not find a house for $520k or less and put 20% down. Then you don’t have to worry about PMI or 401k loan. Build savings back up by only contribute to 401k up to company match.

[ljinvestor]

Read the active forum on “How shall we buy our first house”

Why not find a house for $520k or less and put 20% down. Then you don’t have to worry about PMI or 401k loan. Build savings back up by only contribute to 401k up to company match.

[ljinvestor]

Read the active forum on “How shall we buy our first house”

Why not find a house for $520k or less and put 20% down. Then you don’t have to worry about PMI or 401k loan. Build savings back up by only contribute to 401k up to company match.

[sdrealtor]

Be prepared for a 6 month search if you havent started. As you arent dependent upon the school year yet, you can be shopping when I always find the best deals are put together which is between October and December. By then you should be able to save enough to have 20% down and 6 months reserves. With 20% down and that income you should be able to find a great home under $600K and perhaps quite a bit under depending upon what you are looking for. Get yourself good help and you will be fine.

Just a quick note, the advice you will get to follow will come from the harshest critics left. Many of them missed out on 4% or lower 30 yr fixed rates and prices which were lower than they are now. I’m not saying that they are or were wrong but I certainly wouldnt say they were right either. Only in hindsight will any of us know for certain. It was it is.

[sdrealtor]

Be prepared for a 6 month search if you havent started. As you arent dependent upon the school year yet, you can be shopping when I always find the best deals are put together which is between October and December. By then you should be able to save enough to have 20% down and 6 months reserves. With 20% down and that income you should be able to find a great home under $600K and perhaps quite a bit under depending upon what you are looking for. Get yourself good help and you will be fine.

Just a quick note, the advice you will get to follow will come from the harshest critics left. Many of them missed out on 4% or lower 30 yr fixed rates and prices which were lower than they are now. I’m not saying that they are or were wrong but I certainly wouldnt say they were right either. Only in hindsight will any of us know for certain. It was it is.

[sdrealtor]

Be prepared for a 6 month search if you havent started. As you arent dependent upon the school year yet, you can be shopping when I always find the best deals are put together which is between October and December. By then you should be able to save enough to have 20% down and 6 months reserves. With 20% down and that income you should be able to find a great home under $600K and perhaps quite a bit under depending upon what you are looking for. Get yourself good help and you will be fine.

Just a quick note, the advice you will get to follow will come from the harshest critics left. Many of them missed out on 4% or lower 30 yr fixed rates and prices which were lower than they are now. I’m not saying that they are or were wrong but I certainly wouldnt say they were right either. Only in hindsight will any of us know for certain. It was it is.

[sdrealtor]

Be prepared for a 6 month search if you havent started. As you arent dependent upon the school year yet, you can be shopping when I always find the best deals are put together which is between October and December. By then you should be able to save enough to have 20% down and 6 months reserves. With 20% down and that income you should be able to find a great home under $600K and perhaps quite a bit under depending upon what you are looking for. Get yourself good help and you will be fine.

Just a quick note, the advice you will get to follow will come from the harshest critics left. Many of them missed out on 4% or lower 30 yr fixed rates and prices which were lower than they are now. I’m not saying that they are or were wrong but I certainly wouldnt say they were right either. Only in hindsight will any of us know for certain. It was it is.

[sdrealtor]

Be prepared for a 6 month search if you havent started. As you arent dependent upon the school year yet, you can be shopping when I always find the best deals are put together which is between October and December. By then you should be able to save enough to have 20% down and 6 months reserves. With 20% down and that income you should be able to find a great home under $600K and perhaps quite a bit under depending upon what you are looking for. Get yourself good help and you will be fine.

Just a quick note, the advice you will get to follow will come from the harshest critics left. Many of them missed out on 4% or lower 30 yr fixed rates and prices which were lower than they are now. I’m not saying that they are or were wrong but I certainly wouldnt say they were right either. Only in hindsight will any of us know for certain. It was it is.

[SD Realtor]

Could not agree more with what sdr said. You have ALOT of company looking for what you described. Another consideration would be area. For that same 560-620k you may get a little bit more selection and more home in Poway. Of course there is also Sabre Springs and CMR if you want and all of these are Poway schools as well but a longer commute (assuming you work where everyone else does).

Again though, I wouldn’t buy unless you have a liquidity cushion after you plunk the downpayment down. Some people can live without that cushion and build it up after they buy, some people wait.

[SD Realtor]

Could not agree more with what sdr said. You have ALOT of company looking for what you described. Another consideration would be area. For that same 560-620k you may get a little bit more selection and more home in Poway. Of course there is also Sabre Springs and CMR if you want and all of these are Poway schools as well but a longer commute (assuming you work where everyone else does).

Again though, I wouldn’t buy unless you have a liquidity cushion after you plunk the downpayment down. Some people can live without that cushion and build it up after they buy, some people wait.

[SD Realtor]

Could not agree more with what sdr said. You have ALOT of company looking for what you described. Another consideration would be area. For that same 560-620k you may get a little bit more selection and more home in Poway. Of course there is also Sabre Springs and CMR if you want and all of these are Poway schools as well but a longer commute (assuming you work where everyone else does).

Again though, I wouldn’t buy unless you have a liquidity cushion after you plunk the downpayment down. Some people can live without that cushion and build it up after they buy, some people wait.

[SD Realtor]

Could not agree more with what sdr said. You have ALOT of company looking for what you described. Another consideration would be area. For that same 560-620k you may get a little bit more selection and more home in Poway. Of course there is also Sabre Springs and CMR if you want and all of these are Poway schools as well but a longer commute (assuming you work where everyone else does).

Again though, I wouldn’t buy unless you have a liquidity cushion after you plunk the downpayment down. Some people can live without that cushion and build it up after they buy, some people wait.

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