My husband and I are currently working with two timelines….one would be to buy next summer, one would be to buy two summers from now. Right now we are saving money and he just opened a secured credit card in January (he had no loans or cards for years + a few medical collections so his credit was shot)….Here are the things that will be different in two years from now, versus one:
His medical collections which have been paid for a long time are set to come off in 2017, so his credit score will increase a lot
He will have had revolving credit open for 2+ years
We will have $ 20-30k extra saved from what we are set to have in summer of 2016.
Will have those medical collections still on his report, albeit old and paid off for a long time
Will have not as long revo;lving credit history – scores will inevitably be lower than they will be in 2017
We will have enough for 10% down plus 6 months reserves and closing costs, but barely.
Now I know based on all this, the obviousl choice is to wait two years – save a LOT more money, have his credit report have some dramatic positive changes occur that wont be happening this next year, etc.
HOWEVER, is there any disadvantage to waiting? We want to build new. The area in which we want to build is all newer suburban, so im assuming the housing choices will still be plenty decent at that time…but is there a disadvantage? What if interest rates go up? The housing prices in this area seem to go up to…for example, the same house model people were buying for $ 300k in 2013 seems to bemore in the $ 330k range now….so what if they just keep going up and we end up with the SAME house in 2017 that we wouldve bought in 2016, only just paid more money for it? Plus obv that’s an extra year of paying rent…and maybe the banks dont CARE about the medical collections that much since theyre old and have been paid off awhile. After all, his FICO mortgage scores are all like, 60 points higher than his regular ones.
I just don’t want to feel like we’re doing a good thing by waiting longer, when in reality maybe the advantages arent as much as what I thought they’d be. Alternatively, if it’s as clear as it seems above that 2017 is WAY better, than sure, im totally fine with waiting it out. AHHH!!