Tips on purchasing a new home in another location

[Shawie]

My husband and I are debt free, fair/excellent credit (his 700/mine 765) with about 7K in our savings together right now. We are planning on relocating to another place so he can be in an area with more job opportunities. Our house is paid for and we plan on selling it in the future, finance by owner type situation. I plan on doing some research as far as what this house is worth but right now I'm thinking it is worth at least 30K.

In about a month I'm going to try a pursue a different job which I am fairly confident I can acquire a position that pays at least 30K/yr and my husband is currently making 35K/yr.

We plan on making the move in about 2 years or less... and I am beginning my research about purchasing a new home in San Antonio. I'm not sure where to start though! How much should we have saved up before we move? What are some things to look for when buying a new home? Should we get an apartment first and find a house later after we move?

Any insight would be greatly appreciated! Thanks in advanced!

[bjl584]

Your house is only worth $30K? Is it a small place?

I don't know what the average house sells for in San Antonio, but it's probably more than $30K.

Rule of thumb is to have a 20% down payment saved up, have a 6 month emergency fund in place, and not buy anything that is more than 3x your annual income.

I'd start by going on realtor.com and searching houses in San Antonio that fit your criteria. Only then will you know what you need to do financially to prepare.

[autoxer]

Should we get an apartment first and find a house later after we move?

I think that is a great idea. Find an apartment that is really close to the job, so that you can minimize your commute. Take your time getting to know the area before you decide which part of town you want to live in long term.

[Shawie]

We are anticipating on paying around 150K for a new house but obviously we would need the income to support our decision on something like that. Yes, our current house is small 2br and 1 bath about 900 sqft.

[JoeP]

Not sure where you are now, but I'd get familiar with the differences in culture, climate, and tax structures. While it doesn't apply to Texas, some states base your auto registration fee off your vehicle's value, so watch out for fees in unexpected places like this when calculating your expenses.

I'll bet a quick google search will bring you to a bunch of forums in San Antonio, where you can ask natives and newcomers alike questions like those you posted here.

[Eagle]

Any insight would be greatly appreciated! Thanks in advanced!

Welcome to the forums

So your income will be 65k once you get your job right? How much do you guys spend monthly? 1.5k? 2k?

How much can you save each month in 2 years?

[Shawie]

We can live pretty frugally and save $1500 at least each month if we had to.

We just got to figure out how much we can save.

Should I wait to get pre-qualified or should I look into it now to get an idea, or will it be best to wait will it knock down my credit score if I get pre-qualified for a loan?

[mo0n]

Do you have any idea what part of San Antonio you would like to live in?

[Eagle]

We can live pretty frugally and save $1500 at least each month if we had to.

We just got to figure out how much we can save.

Should I wait to get pre-qualified or should I look into it now to get an idea, or will it be best to wait will it knock down my credit score if I get pre-qualified for a loan?

Is the 65k take home or before taxes?

If you can save $1500 a month by living frugally that'd be $36,000 in 24 months. Add that to your 30k in the sale of your house and you'd have $66,000 to put down towards a house and keep as an emergency fund. I'd put down the 20% ($30,000) to avoid PMI (private mortgage insurance) on a $150,000 house and put the rest in a savings account as your emergency fund.

Houses always cost more than first estimated. You will probably spend 1 or 2% a year of the value of the house on upkeep/maintenance.

Are you going to need to buy new furniture or appliances? Or have you thought about that?

Pre-qualification only lasts a couple of months if memory serves correctly. See this post for more information: pre-qualified, pre-approved, and loan commitment

[Shawie]

What is Private Mortgage Insurance and what determines when it is needed? We are unsure which part of San Antonio we'd like to live in. One thing that holds me back from really wanting to take the apartment route first is because I can't help but think the money we'd be paying for rent we could be saving towards a new house instead. However the bottom line is... the job opportunities for my husband is in San Antonio that's why we're moving there instead. I suppose he can aim to try to find something else here after his contract ends. However, if we move we could potentially just lease out this house and use that as income to pay for the apartment down there. So many factors to consider but moving to San Antonio is definitely the plan and it could be rolling out during the 4th quarter of next year. Again, depending on his contract which could possible extended, we won't know until it happens.

[Petunia 100]

What is Private Mortgage Insurance and what determines when it is needed? We are unsure which part of San Antonio we'd like to live in. One thing that holds me back from really wanting to take the apartment route first is because I can't help but think the money we'd be paying for rent we could be saving towards a new house instead. However the bottom line is... the job opportunities for my husband is in San Antonio that's why we're moving there instead. I suppose he can aim to try to find something else here after his contract ends. However, if we move we could potentially just lease out this house and use that as income to pay for the apartment down there. So many factors to consider but moving to San Antonio is definitely the plan and it could be rolling out during the 4th quarter of next year. Again, depending on his contract which could possible extended, we won't know until it happens.

Well, stop thinking of it that way. When you move to a completely new area, it takes some time for you to discover which area(s) appeal to you. San Antonio is a big city, renowned for terrible traffic. You don't want to be spending an hour in the car, stuck in traffic, to get to Target, your dentist's office, etc., on a regular basis. You don't want to buy a home and 6 months later realize that XYZ neighborhood would have been so much better for you. At that point, moving again will be very expensive.

Also, when you go to buy that house, you don't want to be in a position of having to find and purchase a house NOW. That often leads to decisions which are later regretted. You want to be able to take your time, find the right house, and negotiate the right price. Be willing to walk away and find another house if the negotiations don't go well. As a well qualified buyer who doesn't need to buy a house NOW, you are in a position of strength.

Private mortgage insurance is insurance to protect the lender in the event the borrower defaults. The borrower pays the insurance premiums. If you put down at least 20%, you don't have to buy it. Also, when you see interest rates quoted, they are often the very best rates available to borrowers with excellent credit and 20% or more down. It is common to pay a bit higher rate if you are not that sort of buyer.

[YolandoAmaya]

I think if you are going to buy homes in totally different and new area, you have to know all the things about that area, firstly knows the home charges in San Antonio. Only after that sell your current home. manage money, according to that prize rate.

[snafu]

Oh my, you are throwing out 'red flags,' so please go slow on your plans. I wrote ideas about investing on your other thread which is wrong, wrong, wrong if you need money in 2 years to relocate and buy a house. The 1st rule for investing presumes you will not need to remove that money for 5 years.

If you have a two year timeline to relocate to TX that's a big, life challenge. Do you have family, relatives or friends who are in San Antonio to help you understand the Texas vibe? Being in major traffic snarls is frustrating. I don't know where you are now but it seems less pricey if your house is currently valued at $ 30,000. and you expect to pay so much more. It seems reasonable to guess that you'll pay more for the long list of living expenses like property tax, utilities [electric, water, sewer, garbage], food, car insurance and maintenance etc.

Renting your current home while living in TX has potential for many problems. It's such a headache to try to sell a house when you live somewhere else and made worse getting co operation from a renter. Do you plan to sell up or take your stuff to TX? Would you be willing to rent a low cost apartment in someone's house to let DH decide if he likes the job?

[johnt78]

It’s important to do your research when buying property so that you are prepared emotionally as well as financially. If you’re determined to get onto the property ladder, sometimes the properties you look at within your budget might not be ideal, however it’s a step into the market and over time you will be able to increase your home equity and Always ask for your neighborhood before buying the property, you need to determine what kind of neighborhood you want to live in. if you bought a property in a neighborhood you don’t like then you do have a serious problem.