I've used all the spreadsheets and calculators, but buying a house still feels like such a nebulous thing. I need some opinions & advice.
I DON'T have a lot of wealth, but I make good money (made a career change & paid down a bunch of debt from my 20s so building wealth a little late)
My stats:
Total Assets: $63,000
- Cash: $10,000
- 401K (Roth & Traditional): $48,000
- Stocks/Crypto: $5,000
Total Debts: $17,000
- Current balance on a pay-off-every-month card: $4,500
- 0% interest, will be paid off before interest starts: $9,000
- Still paying off: $3,500
Salary: $151,000
- Expected annual bonus: ~12k/year
- Expected annual raise: ~10-15k/year
Housing stats:
Current rent: $2200 -- I don't like my place and want to move. A new rental would be more like $2500-2700
I've been looking at houses under $350k, but my budget really feels a lot more like $320k or under. I just saw a place for $310k that I like but needs updates.
I'd be going with a low downpayment because I don't have that much money. I might do a 401k loan for the downpayment.
Ballpark numbers if I offered on this house would be ~22k closing costs, ~2600/mo.
I also would want to make several renovations (mostly DIY). They can wait but I'd love to be able to do them ASAP (this seems unlikely though). The big ones are: hardwood floors on the first floor. Redo kitchen. Redo master bath.
The biggest thing missing from the equation is money in the bank imo. I don't have enough for a real emergency fund. but I am accumulating wealth faster than I ever have. I feel more comfortable about my job security & salary growth than I ever have, but obviously there are no guarantees.
Please tell me I'm crazy for thinking I should do this. Or that I can kinda manage it. I honestly go back and forth so much. Thanks in advance.
original posted by typewritermender to r/personalfinance on Sun, 21 Apr 2024 15:36:05 GMT.