Should I buy a house? Can I pay?

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I am considering buying a home in the near future. My credit is good (about 730) and have very low debt (just paid off my car loan and pay the credit cards each month). I saved over $ 20,000 for a down payment (10%) and committed myself. My fiance has a bad credit rating and not as much as I could, I earn with my credit / income, etc., but we share the mortgage costs. Her parents have agreed to co-sign for him if we can use her income when we need them (his is $ 30k) We currently have an apartment for $ 750 per month and houses starting in our area ( Scottsdale, AZ) would be about $ 215K and are generally built in the 60s. Is it wise to buy now or should I save for a larger drop of a first payment? Our rent is so cheap, but I’m still very frustrated in a small town and probably move to a bigger apartment, even if I did not buy. But I’m afraid if I wait until after we get married (Fall ’09) property prices will increase unerschwinglichLeider there is not much different than adding his love and companionship for me, I’m happy. I think it’s better to qualify on my own and just let his half of the mortgage as a roommate.

  1. Reply
    May 2, 2011 at 1:49 am

    You can qualify on your own. In fact, since you are not married yet, you should get the house before you do get married, to prevent his poor credit score from hurting your chances. You’re building a life together. You don’t need his parents to cosign, but I do wonder…you have great credit, a great down payment, a good paying job…how is he contributing to the house buying process. By letting his parents cosign for him?

  2. Reply
    May 2, 2011 at 2:17 am

    Your additional details sound like a good plan. I don’t have any moral dilemma with you buying together, but his credit score is going to raise your interest rate and PMI. Also, if his parents co-sign, that immerses them in this, and you might not want to go that route, it could be messy.

    You might want to consider a legally binding agreement with your BF about who is bringing what to the purchase, who will pay for what during, and what happens to the house if you get married or break up.

    Good luck to you.

  3. Reply
    May 2, 2011 at 3:17 am

    BUY NOW!!! With your credit score and 20k down, you are good. I know buying your first home can be a little overwhelming, but now is the time! Do it alone. You are more than qualified.

    Don’t go crazy. Just get a nice starter home in an area that looks prosperious. Within 5 years you guys should have enough equity to move on to another home that can be in both your names. And in the mean time make sure he works on that credit score, so you guys can do this again as a team.

    Good Luck!

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