Over the weekend, I stayed the night at my parents’ house. It just made sense because my mom and sister had just thrown the bridal shower (yes, I still owe a post on that) and we were doing family things for Mother’s Day on Sunday. While there, I was talking to my aunt, who knows financial things, as well as my parents, about buying a house. I was asking her how difficult it was to get a loan, and she said that income is a big factor as well as having a substantial down payment and not a lot of other debt. I’m happy to say that we’re good on not having a lot of debt – all we have is a little bit left on Mat’s car loan and then his student loan, but it may be that he gets a significant grant which means less loan for us! We also should have a pretty decent down payment by next year when we want to buy. The income part worries me a little bit though. We aren’t poor (though we’re living poor-ish so we can save that down payment), but we aren’t loaded either.
Later though, when talking to my parents, they said that the amount of buffer savings we have is good and that we should focus on just saving for the house. This means we can increase our savings a lot each month! However, it’s still getting harder and harder to get a mortgage, especially in Southern California.
Have you bought a house? What was the process like?