To max out your purchasing ability or not?

[SD Realtor]

Jimmy –

As you guys are first time homebuyers my advice is that you should definitely NOT max out your purchasing power. As a first time buyer you will most likely be buying another home down the line. Take a long view of the purchase, buy a home you love but that you can also afford. Your home purchase should not stress you out. You should have AT LEAST 6 months cash on the sidelines in case of an emergency. As plentiful as things may be it is blinding how fast large companies implement cost cutting measures when they need to. When that happens layoffs occur. I am not trying to be overly pessimistic but I am just advising you to play it safe and keep an eye on the big picture. By a home you love, by a home that is affordable and will not eat up every penny you have. Buy something that will allow you to continue to fund 401ks, enjoy life and continue to save money and get to work on building or adding to your cash pile. Who knows you may be able to save enough such that in many years down the road, you will not need to sell your home, you can convert it to a rental and buy the next one.

I just would not try to shoot the moon on the first purchase. Also as you know there is no rush right now and Mira Mesa will continue to decline. (assuming MM is where you want to buy at)

SD Realtor

[SD Realtor]

Jimmy –

As you guys are first time homebuyers my advice is that you should definitely NOT max out your purchasing power. As a first time buyer you will most likely be buying another home down the line. Take a long view of the purchase, buy a home you love but that you can also afford. Your home purchase should not stress you out. You should have AT LEAST 6 months cash on the sidelines in case of an emergency. As plentiful as things may be it is blinding how fast large companies implement cost cutting measures when they need to. When that happens layoffs occur. I am not trying to be overly pessimistic but I am just advising you to play it safe and keep an eye on the big picture. By a home you love, by a home that is affordable and will not eat up every penny you have. Buy something that will allow you to continue to fund 401ks, enjoy life and continue to save money and get to work on building or adding to your cash pile. Who knows you may be able to save enough such that in many years down the road, you will not need to sell your home, you can convert it to a rental and buy the next one.

I just would not try to shoot the moon on the first purchase. Also as you know there is no rush right now and Mira Mesa will continue to decline. (assuming MM is where you want to buy at)

SD Realtor

[SD Realtor]

Jimmy –

As you guys are first time homebuyers my advice is that you should definitely NOT max out your purchasing power. As a first time buyer you will most likely be buying another home down the line. Take a long view of the purchase, buy a home you love but that you can also afford. Your home purchase should not stress you out. You should have AT LEAST 6 months cash on the sidelines in case of an emergency. As plentiful as things may be it is blinding how fast large companies implement cost cutting measures when they need to. When that happens layoffs occur. I am not trying to be overly pessimistic but I am just advising you to play it safe and keep an eye on the big picture. By a home you love, by a home that is affordable and will not eat up every penny you have. Buy something that will allow you to continue to fund 401ks, enjoy life and continue to save money and get to work on building or adding to your cash pile. Who knows you may be able to save enough such that in many years down the road, you will not need to sell your home, you can convert it to a rental and buy the next one.

I just would not try to shoot the moon on the first purchase. Also as you know there is no rush right now and Mira Mesa will continue to decline. (assuming MM is where you want to buy at)

SD Realtor

[an]

then you’re not really stretching yourself are ya?
You can still stretch even if you have sufficient rainy day fund because your monthly expense is at the high end of the allowable range base set by the bank base on your monthly income. At least that’s how I see it.

[an]

then you’re not really stretching yourself are ya?
You can still stretch even if you have sufficient rainy day fund because your monthly expense is at the high end of the allowable range base set by the bank base on your monthly income. At least that’s how I see it.

[an]

then you’re not really stretching yourself are ya?
You can still stretch even if you have sufficient rainy day fund because your monthly expense is at the high end of the allowable range base set by the bank base on your monthly income. At least that’s how I see it.

[an]

then you’re not really stretching yourself are ya?
You can still stretch even if you have sufficient rainy day fund because your monthly expense is at the high end of the allowable range base set by the bank base on your monthly income. At least that’s how I see it.

[CBad]

Definitely take the advice of others telling you NOT to stretch. If this is your first home you really have little perspective on the expenses that go into owning a home. I’m sure you’ve thought about them but you should get a clear idea on how much you’ll pay for things like insurance, property tax, decorating, furniture, maintenance, remodeling (even if it’s perfect now if it’s the home you’re going to stay in, it will happen), etc. Figure out realistically what all of that is going to cost. And then add some more to that figure for the unexpected.

You both work now and you have no children but you are planning on having them in the future. Children cost money! That’s pretty obvious but have you worked two children and all of their expenses into your future budget? Have you worked in time off of work and daycare if you’re planning on both working or the loss of income if one of you is going to stay home with them? How about extra food, clothing, college savings, medical costs, furniture, car seats, toys, after school activities, transportation, braces, etc. etc. the list goes on and on. You can’t overlook the fact that adding two children into your life will increase your spending. Or who knows, when going for your 2nd child you could find out it’s twins (hey, happened to ME!).

And like someone else mentioned, you’re figuring on best case scenario. That is without any layoffs, illnesses, family issues, accidents for you or your wife.

Sorry to sound pessimistic but it’s people who maxed out their purchasing ability and didn’t think ahead who are somewhat to blame for the mess we are in right now. Put at least 20% down and don’t spend any more than 30% on housing. Personally I’d aim more conservatively than that but that’s just me. I also would never cave on things like maxing out retirement, insurance, investing, and college savings for a “better” house. Nor would I want to give up things I enjoy and be a slave to a mortgage.

[CBad]

Definitely take the advice of others telling you NOT to stretch. If this is your first home you really have little perspective on the expenses that go into owning a home. I’m sure you’ve thought about them but you should get a clear idea on how much you’ll pay for things like insurance, property tax, decorating, furniture, maintenance, remodeling (even if it’s perfect now if it’s the home you’re going to stay in, it will happen), etc. Figure out realistically what all of that is going to cost. And then add some more to that figure for the unexpected.

You both work now and you have no children but you are planning on having them in the future. Children cost money! That’s pretty obvious but have you worked two children and all of their expenses into your future budget? Have you worked in time off of work and daycare if you’re planning on both working or the loss of income if one of you is going to stay home with them? How about extra food, clothing, college savings, medical costs, furniture, car seats, toys, after school activities, transportation, braces, etc. etc. the list goes on and on. You can’t overlook the fact that adding two children into your life will increase your spending. Or who knows, when going for your 2nd child you could find out it’s twins (hey, happened to ME!).

And like someone else mentioned, you’re figuring on best case scenario. That is without any layoffs, illnesses, family issues, accidents for you or your wife.

Sorry to sound pessimistic but it’s people who maxed out their purchasing ability and didn’t think ahead who are somewhat to blame for the mess we are in right now. Put at least 20% down and don’t spend any more than 30% on housing. Personally I’d aim more conservatively than that but that’s just me. I also would never cave on things like maxing out retirement, insurance, investing, and college savings for a “better” house. Nor would I want to give up things I enjoy and be a slave to a mortgage.

[CBad]

Definitely take the advice of others telling you NOT to stretch. If this is your first home you really have little perspective on the expenses that go into owning a home. I’m sure you’ve thought about them but you should get a clear idea on how much you’ll pay for things like insurance, property tax, decorating, furniture, maintenance, remodeling (even if it’s perfect now if it’s the home you’re going to stay in, it will happen), etc. Figure out realistically what all of that is going to cost. And then add some more to that figure for the unexpected.

You both work now and you have no children but you are planning on having them in the future. Children cost money! That’s pretty obvious but have you worked two children and all of their expenses into your future budget? Have you worked in time off of work and daycare if you’re planning on both working or the loss of income if one of you is going to stay home with them? How about extra food, clothing, college savings, medical costs, furniture, car seats, toys, after school activities, transportation, braces, etc. etc. the list goes on and on. You can’t overlook the fact that adding two children into your life will increase your spending. Or who knows, when going for your 2nd child you could find out it’s twins (hey, happened to ME!).

And like someone else mentioned, you’re figuring on best case scenario. That is without any layoffs, illnesses, family issues, accidents for you or your wife.

Sorry to sound pessimistic but it’s people who maxed out their purchasing ability and didn’t think ahead who are somewhat to blame for the mess we are in right now. Put at least 20% down and don’t spend any more than 30% on housing. Personally I’d aim more conservatively than that but that’s just me. I also would never cave on things like maxing out retirement, insurance, investing, and college savings for a “better” house. Nor would I want to give up things I enjoy and be a slave to a mortgage.

[CBad]

Definitely take the advice of others telling you NOT to stretch. If this is your first home you really have little perspective on the expenses that go into owning a home. I’m sure you’ve thought about them but you should get a clear idea on how much you’ll pay for things like insurance, property tax, decorating, furniture, maintenance, remodeling (even if it’s perfect now if it’s the home you’re going to stay in, it will happen), etc. Figure out realistically what all of that is going to cost. And then add some more to that figure for the unexpected.

You both work now and you have no children but you are planning on having them in the future. Children cost money! That’s pretty obvious but have you worked two children and all of their expenses into your future budget? Have you worked in time off of work and daycare if you’re planning on both working or the loss of income if one of you is going to stay home with them? How about extra food, clothing, college savings, medical costs, furniture, car seats, toys, after school activities, transportation, braces, etc. etc. the list goes on and on. You can’t overlook the fact that adding two children into your life will increase your spending. Or who knows, when going for your 2nd child you could find out it’s twins (hey, happened to ME!).

And like someone else mentioned, you’re figuring on best case scenario. That is without any layoffs, illnesses, family issues, accidents for you or your wife.

Sorry to sound pessimistic but it’s people who maxed out their purchasing ability and didn’t think ahead who are somewhat to blame for the mess we are in right now. Put at least 20% down and don’t spend any more than 30% on housing. Personally I’d aim more conservatively than that but that’s just me. I also would never cave on things like maxing out retirement, insurance, investing, and college savings for a “better” house. Nor would I want to give up things I enjoy and be a slave to a mortgage.

[Anonymous]

I recommend NOT maxing yourself out. You are young. Your greatest earning power is TIME. Meaning, if you are smart, you will invest money when you are young, and it will grow to lots of money over the years. Don’t be putting all of your money into a house. Get something you can eaily afford. Then enjoy life, but also save and invest. You will be much happier and not have debt stress.

Everyone telling you to get the most you can afford are the banks, realtors and if they aren’t going to make money off you, then they are just stupid.

My wife and I paid extra and paid our home off in ten years. We bought in 97 and it only cost $155K (bottom of a bust cycle in housing). We are on the east coast. County now assess our home at $300K. We saved more than $100K in interest by paying off our home early. Now, we take what was our mortgage and invest the money. I never understand why people pay the bank $10K in interest so they won’t have to pay the IRS $3K in taxes. If you think about it, every institution wants you to pay into the system to keep it afloat.
_______________________________
Zero debt and paid for house.

[Anonymous]

I recommend NOT maxing yourself out. You are young. Your greatest earning power is TIME. Meaning, if you are smart, you will invest money when you are young, and it will grow to lots of money over the years. Don’t be putting all of your money into a house. Get something you can eaily afford. Then enjoy life, but also save and invest. You will be much happier and not have debt stress.

Everyone telling you to get the most you can afford are the banks, realtors and if they aren’t going to make money off you, then they are just stupid.

My wife and I paid extra and paid our home off in ten years. We bought in 97 and it only cost $155K (bottom of a bust cycle in housing). We are on the east coast. County now assess our home at $300K. We saved more than $100K in interest by paying off our home early. Now, we take what was our mortgage and invest the money. I never understand why people pay the bank $10K in interest so they won’t have to pay the IRS $3K in taxes. If you think about it, every institution wants you to pay into the system to keep it afloat.
_______________________________
Zero debt and paid for house.

[Anonymous]

I recommend NOT maxing yourself out. You are young. Your greatest earning power is TIME. Meaning, if you are smart, you will invest money when you are young, and it will grow to lots of money over the years. Don’t be putting all of your money into a house. Get something you can eaily afford. Then enjoy life, but also save and invest. You will be much happier and not have debt stress.

Everyone telling you to get the most you can afford are the banks, realtors and if they aren’t going to make money off you, then they are just stupid.

My wife and I paid extra and paid our home off in ten years. We bought in 97 and it only cost $155K (bottom of a bust cycle in housing). We are on the east coast. County now assess our home at $300K. We saved more than $100K in interest by paying off our home early. Now, we take what was our mortgage and invest the money. I never understand why people pay the bank $10K in interest so they won’t have to pay the IRS $3K in taxes. If you think about it, every institution wants you to pay into the system to keep it afloat.
_______________________________
Zero debt and paid for house.

[Anonymous]

I recommend NOT maxing yourself out. You are young. Your greatest earning power is TIME. Meaning, if you are smart, you will invest money when you are young, and it will grow to lots of money over the years. Don’t be putting all of your money into a house. Get something you can eaily afford. Then enjoy life, but also save and invest. You will be much happier and not have debt stress.

Everyone telling you to get the most you can afford are the banks, realtors and if they aren’t going to make money off you, then they are just stupid.

My wife and I paid extra and paid our home off in ten years. We bought in 97 and it only cost $155K (bottom of a bust cycle in housing). We are on the east coast. County now assess our home at $300K. We saved more than $100K in interest by paying off our home early. Now, we take what was our mortgage and invest the money. I never understand why people pay the bank $10K in interest so they won’t have to pay the IRS $3K in taxes. If you think about it, every institution wants you to pay into the system to keep it afloat.
_______________________________
Zero debt and paid for house.

[Author]

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