Reply to would you take out a mortgage that is half of your take home pay?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]You're living above your means if you only have 6K in savings on 6500/month of take-home pay. Get your spending under control before you worry about purchasing a house.[/quote]

[b]I don't have only 6k in savings now, that is the amt I will have left in savings after purchasing home.[/b][/quote]

and THAT is financial suicide. I hope the lender doesn't approve you, for your own good. They'd be doing you a huge favor.  You need to boost your savings [b]so that you have 6 months minimum in your savings account[/b], and then after that assuming your same income, you should be looking at homes in the $500K range (which is what you're currently looking at based on the mortgage amount you posted), you should be looking at homes in the $300K range. Otherwise, rent. [/quote]

[b]Why 6 months?  She’s a government employee, right?  I assume she has STD, sick leave and LTD as well. There’s also a TSP she could borrow from.  A six month emergency fund seems excessive.  Most homeowners wouldn’t be homeowners and would still be renters if they followed your rules.[/b] [/quote]

What are you talking about? The 6 months has to do with having money not just to pay your mortgage if you lose your job but also if you have a roof leak, a water heater burst, a pipe burst, the list is quite long. You can't wipe your a$$ with $6K when it comes to home repairs. Also we lowly, unfortunate private company[b] employees also have STD, LTD, sick leave, and 401k's that we can borrow from![/b] Listen to yourself.  Also your last statement is embarrassing - most homebuyers have more than $6K in their savings account to cover expenses! You are clueless. [/quote]

Yes, you’re also more likely to get laid off and be out of work.

I have plenty of money to cover home expenses but didn’t when I first got on the property ladder.  It’s prudent for OP to weigh current housing costs, the age of the home she wants to buy, her job security, etc.

She could very well spend the next 5 years saving up an emergency fund and she would have likely NOT needed a new roof, hot water heater etc on a 2 year old house. Sometimes you need to take risks to get anywhere. [/quote]

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