Submitted by [deleted] t3_yhg3mt in personalfinance
[deleted]
Submitted by [deleted] t3_yhg3mt in personalfinance
[deleted]
Can you afford the house on your current $26k annual income?
I've put my information into multiple mortgage calculators, and if I can get a cheaper one I definitely can. The thing is when I graduate I plan on going full time at my current job, so I'll be making more as well.
Don’t make long term financial decisions based on future plans. Things change.
I’m assuming you are not approved for a mortgage on your own which is why you’re asking about your dad as co-signer.
I would take this as an indicator that you’re not in a position to buy a house yet. Wait until you’re out of school, you don’t know you have the higher income yet.
Make sure you include property taxes and insurance in those calculations plus extra left over to save for when things break. What kind of down-payment will you make? How much in savings will you have earmarked for fixes (which should also be separate from your emergency fund)
Honestly? Don’t buy a house until you’re done with school and have stayed at the same job for a year or two.
It will help (you have zero chance without one), but at your income, still might not be enough.
How old are you?
You aren’t ready to buy a house. That’s fine. You’re eager to own a house because people say renting is throwing away money. But with raising interest rates and declining property values that’s not true in the short term. You could buy a house and be underwater in a year. Ask anyone who bought a house in 2006. If they could live there till 2018 they were fine but inf they had to move in 2009 they were screwed. If you’re a full time student you don’t want to buy a house you’ll need to hold for ten years to break even if there’s a downturn.
If you’re not sure what your job will be in a year don’t buy a house. What if you get a dream job in another state? You’d be stuck with your house. Renting is buying your freedom.
Also when you rent you have certainty. Any repairs are the landlords problem. When you rent the most you have to pay for housing is your rent payment. When you own, any repairs come out of your pocket— the least you have to pay is your mortgage.
If you need a co-signer who won’t be living there … probably shouldn’t be buying it 🤷🏻♀️
iamdavidrice t1_iudjdin wrote
It’ll likely depend on what your dad’s DTI is