Main > Everything Else

Buying a first home

<< < (2/17) > >>

shmokes:
My credit is excellent.  But I don't want to buy just for the sake of buying.  If it doesn't make me better off financially, or allow us to live in a nicer, larger place for the cost of a smaller place, I'm not interested.  I'll have to pick up that book, but frankly I'm busy enough as it is dealing with my last semester at school, while simultaneously taking care of getting into law school, getting my wife a job, doing my own job, etc.  If it's obvious that I should not be trying to buy a house right now I'll just put off reading that book for the next few years.

It's probably worth noting that we currently do not plan to stay in Miami beyond law school.  That could change, I suppose, if we end up really loving it there or something to that effect, but I expect that we will leave immediately after graduation.

Lastly, and I know I should probably not be responding to this as it was just a bit of needling, but I don't think that going to law school qualifies me for a loan.  We would obviously have to be able to pay our mortgage payments.  But I would imagine that banks, who want to give as many loans out as possible because they are profitable, would want to consider every relevant factor.  It seems reasonable that future earning capacity would not be entirely irrelevant.   :dunno

ChadTower:

Excellent credit is only one part of it... you also have to have sufficient income.  IMO, any equity gained would be swallowed by property tax in only a three year period, and transactional costs would make it quite unprofitable.

Lenders do not consider future earning capacity.  You could drop out tomorrow and never finish.  Your plans aren't their concern.

shmokes:
Hmm . . . I'll have to point my wife to this thread.  It sounds like buying is maybe a bad idea. 

Not really relevant to whether I'll try to buy, but it seems kinda dumb that they wouldn't consider the future earning thing, if just for customer retention.  Kinda like banks lose money on the vast majority of checking accounts because most people never have any significant amount of money in them, but they use services (tellers, ATMs, Online administration services, telephone-based automated services, etc.), and they're almost always free.  But they end up being kind of a loss leader and people generally end up getting loans from whatever bank they normally use.  I would think they would be at least a little interested in it from the standpoint of, "Okay, this guy wants to buy a $250,000 house, which isn't much in Miami, but in ten years he's going to be in the market for a $1.5 million dollar home, and we want to be in on that.  We treat him right today, and he'll want to come back tomorrow."  Of course, I suppose the risk simply outweighs any consideration like that, but . . .

shardian:
To tell you the truth, you going to Law School would be more of a liability than an asset for one reason: school loan debt.
You will be worse off than most people when it comes to loans for the first few years after you graduate until you show a record of paying those large student loans down.

ChadTower:

--- Quote from: shardian on March 20, 2007, 03:08:20 pm ---To tell you the truth, you going to Law School would be more of a liability than an asset for one reason: school loan debt.

--- End quote ---

There is that plus you haven't even started yet.  They will give you credit for it when you are a senior entering your last semester.  You will get zip credit for it until then and they may hold it against you because of the tuition burden you will be carrying for 4 years.

Navigation

[0] Message Index

[#] Next page

[*] Previous page

Go to full version