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In post# 3851 Monk25 presented a situation regarding his credit and plans to purchase a home. Several learned posters, including JABoa and JAFO offered observations.

Proposal, subject to Monk's agreement to participate:

Let's create a post with a new name, something like Our Trip to Our New Home, or something else. Let Monk pick the name. This thread will be an evolving case study of addressing the issues as they come up in the real world in real time. After digesting all advice proffered, and critiqued, Monk will decide what he wants to do. He will post his decisions and report on progress. By the end Monk will have a new home for his family, and we all will have had the benefit of a learning process.

Since none of us knows who Monk is, nor does he know who any of us is, anonymity will provide a context for excellent exchanges. Many posters at this sight assign less than noble motives to all sorts of providers of financial products and services, unfortunately often without sufficient substantive evidence to support their allegations. Since none of will stand to benefit financially from the decisions Monk makes, this will free us to offer our best advice, and to examine our biases that shape that advice. By exploring our advice as well as our biases in this marketplace of ideas, we can all learn and grow. It would be a win/win situation.

So, Monk, you got game?

Regards--dharmadollars


Yes Dharmadollars, I got game! Thanks for the wonderful idea.

OK here is the scenario.

My wife and I are expecting our first child on 12/31/99, a very welcome event although a very big surprise. We had planned on saving money and improving our credit first, but to quote a new and favorite saying of mine "man plans and God laughs."

We live in a studio apartment in NYC, and are desperate to find a house. Our time frame is the sooner the better, but we figure we can wait for a year or so. My credit is not good. Although I am debt free now for the past month (except for my student loan, which I have never missed or have been late on). My wife's credit was ok, but while in college she was orphaned, and was told (unbeknownst to me) that she would not have to repay her student loans. Unfortunately, that only applies to the PLUS loans. She has for the past year been repaying the loan regularly.

My mother has offered to guarantee a mortgage for us, but I suspect that might not be enough. If you read through the Help!!! thread, you can see the advice I have received thus far.

Please feel free to ask me any questions to give you a better idea on what we are looking for any incidentals.

Regards and thanks for all of your help,

Monk25

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No need to rush. Sure, it would be great to have a new house to welcome the baby to, but trust me, he/she won't notice. The first 1-2 years they can't motate on their own, so they don't need a lot of room to ramble...you'll be with them every step of the way.

Now once they start walking (as early as 10 months, as late as 15 months...LOOK OUT! Little ones like to explore EVERYTHING.

House hunting with a baby would be fine. You get out and about, get to see lots of different things, and if you walk in a front door and know immediately that you're wasting your time at a particular location or a pushy salesperson, you can pop out the pacifier and voila, a fussy baby who needs to leave/get 100 percent of your attention immediately.

As per previous advice, find a good mortgage broker who can work to find you a solution. The people at banks & such just process paperwork, and there isn't much wiggle room.

FunDad
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Ok!! Monk Got Game!

(For those who are wondering if this this post belongs on the Prozak board: a little background.

Monk25 posted (3851) information about his soon-to-be-larger family, and his credit worries regarding moving out of the city. Check it out. Several esteemed posters offered advice/observations. You can follow the thread.

I posted (3871) a proposal to make Monk's situation a case study. Monk has accepted the proposal. The string for this adventure will apparently be "Our Trip to Our New Home"

Please join in, per the proposal. I think we will all learn a great deal from this, and have some fun doing it.

Monk asked what info is needed to proceed. Here goes:

1. What is the income of you and your wife? Are you self-employed, commissioned, or paid regular wages? Will she return to work after delivering the baby and maternity leave, i.e., will you be living on one or two incomes?

2. How much savings do you have?
3. At what rate are you saving monthly?
4. What are the credit scores for you and your wife? This is where we get out of hypotheticals and get in to what really happens here. If you do not have someone in mortgage banking to get this info, email me a fax number where I can transmit an authorization form. I will fax your credit info to you, and then YOU can post your scores (only you will know the actual content of your credit report). We can then discuss these scores and how to improve them.
5. Where (which state/county) do you think you will be moving to?

That's enough for starters. answers to the above questions will get the ball rolling. As things get more specific, the range of suggestions from various posters will enrich the inquiry.

Regards--dharmadollars
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1. What is the income of you and your wife? Are you self-employed, commissioned, or paid regular wages? Will she return to work after delivering the baby and maternity leave, i.e., will you be living on one or two incomes?

We are both paid regular wages which amounts to Approximately $75,000 per year. She will return to work (she will probably be able to work from home 2 or 3 days a week).

2. How much savings do you have?

Approximately $26k

3. At what rate are you saving monthly?

We have been saving between 15-20%

4. What are the credit scores for you and your wife? This is where we get out of hypotheticals and get in to what really happens here. If you do not have someone in mortgage banking to get this info, email me a fax number where I can transmit an authorization form. I will fax your credit info to you, and then YOU can post your scores (only you will know the actual content of your credit report). We can then discuss these scores and how to improve them

I will post them shortly

5. Where (which state/county) do you think you will be moving to?

Suffolk County, NY

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<<Suffolk County, NY >>

Hmmm, there's a TMF who could easily give you information on the school system there. Have you included child care costs in your homebuying budget ? It is a substantial cost for infants.

Jacki
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<<Suffolk County, NY >>

Hmmm, there's a TMF who could easily give you information on the school system there. Have you included child care costs in your homebuying budget ? It is a substantial cost for infants.

Jacki


Regarding Childcare, part of our decision in moving there is that my mother and my wifes Aunt live there, both who have offered to watch our baby. Fortunately, that will not be an issue.

As for the public school system, specifically in the areas we are looking in, I am very familiar with them (being a product, myself) and many of my friends teach there, and my brother was a teacher there (until he recently changed professions).

Regards,

Monk25
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Hello everyone, I am back!!

Sorry for the delay, I have just spoken with a mortgage specialist who based on my credit and an approximate down payment of $35k on a house in the $170k-$180k range, thinks I can get a loan in the 8%-8.5% range. Sounds almost too good to be true, though.

What do you think?

Regards,

Monk25
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Since I don't know what your credit scores are I can't comment in any detailed way. With app 20% down it would seem to me that the rate may be a little on the high side. Without specifics, though, I hesitate to comment further.

Good luck with your new home.

Regards--dharmadollars
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