Money Advice Needed! New Baby and DH's New Job

posted 3 years ago in Home
Post # 2
Member
1067 posts
Bumble bee
  • Wedding: September 2014

MrsSparkle10:  I’d personally feel more comfortable renting for a while if you don’t have a down payment saved.  A new baby + new house that you’ll be responsible for all of the repairs on is a lot to take in at once 🙂

 

ETA – the answers to your questions vary SO much based upon where you live, or I’d try to be more specific.

Post # 3
Member
2661 posts
Sugar bee
  • Wedding: May 2014

My kids are older so I can’t remember, but I think initially, you can count on using like 10 diapers a day!  I breastfed and supplemented a little, but that cost was very small, because I only used 1 formula bottle a day.  I could not pump enough at work.  If you don’t work, you probably won’t need to supplement at all.

Post # 4
Member
11734 posts
Sugar Beekeeper
  • Wedding: November 1999

My utility bills for a 3 floor townhouse are: electric – $150 monthly, water $130 quarterly, telecom (internet, phone, cable) – $145 monthly.  Keep in mind you may have HOA or condo fees depending on if you buy or rent – those vary community to community.  

For a house — you need to have savings for emergencies.  If you own, everything is your responsibility.  If you rent, the landlord often covers most issues, like broken appliances and electrical issus.  3-6 months of living expenses is the advised cushion for emergencies when you have a house.  

There are buy vs. rent calculators online that you can put your actual numbers into to see if it’s worth it to buy.  When you buy, closing costs add up fast (ours ended up almost doubling our downpayment amount) so keep in mind you’ll need more than just a downpayment.

Personally, I’d suggest holding off on buying until you have an emergency savings AND a solid downpayment saved up.  

I have no idea about budgeting for babies because I have no kids.

Post # 5
Member
1311 posts
Bumble bee
  • Wedding: March 2015

MrsSparkle10:  Congratulations! Check out this post to help you figure out your baby budgeting needs. http://www.budgetsaresexy.com/2012/06/ultimate-baby-child-costs-tracker/

As for home buying, reality is that most people do not make any money from selling a home, after deducting the mortgage payoff, broker’s fees, and other closing costs, even if they sell for a higher price than originally bought. I’d just rent for awhile and save for a bigger down payment.

Post # 6
Member
2891 posts
Sugar bee
  • Wedding: May 2015

MrsSparkle10:  HUD guidelines say 1/3 or less take home pay for housing. I personally would spend as little as possible until I figure out a budget. Scaling up is easier than cutting back. 

Sign up for amazon mom. You’ll get discounts on stuff you need and delivery will help with running errands. 

Where do you live? In SF 65k doesn’t go far and I wouldn’t plan to have a child on that hhi

Post # 8
Member
42510 posts
Honey Beekeeper
  • Wedding: November 1999

Obviously the answers vary tremendously with where you live.

I suggest renting in the area in which you hope to buy a home to get to know the neighbourhood, the commute etc.  That will give you more time to save for a larger down payment and also build up a reserve fund – the goal being 6 months expenses in ready cash.

In the meantime, continue living your normal lifestyle. There is no reason to suddenly start spending more mone just because DH is makiing more $$. Remember that you will be unemployed while on Maternity leave, then your expenses will skyrocket with childcare.

Post # 10
Member
6204 posts
Bee Keeper
  • Wedding: August 2013 - The Liberty House

MrsSparkle10:  You really need to think about where the money for rent vs a house would be going- a lot of the time, “throwing away money” on rent is a HUGE misconception because once you figure in taxes, repairs, interest, and selling costs, if you don’t plan to stay for a long time, it’s actually more expensive to buy, even if you can sell for a little more than you paid for the house. 

Do you know what rent would be if you rented, vs. the price of the home you’d buy with taxes and mortgage rate?

Post # 12
Member
11734 posts
Sugar Beekeeper
  • Wedding: November 1999

MrsSparkle10:  

Down payments vary based on the loan you select.  

Conventional: Conventional loans have a fixed interest rate for a set term – usually 30 years, but 15 is pretty common too.  If you put down less than 20%, you have to pay PMI (mortgage insurance) unless you own 20% of the home based on the appraised value.  Conventional loans go up to $417,000.

Jumbo Conventional: Same as above, except the loan amount is greater than 417,000

FHA: First-time homebuyers loan, which is a government backed loan.  You can put down as little as 3%, but you will pay PMI for the lifetime of the loan (meaning, even when you own 99% of the home, you are still paying insurance to the mortgage company in case you default on your payments).  There are pluses and minuses to these loans, and I’d suggest discussing these with a lender if you want to go forward with FHA.

VA and USDA loans are two others I don’t have much experience with.  VA, of course, is for military couples, and the USDA loans are for rural development, if you live in an area classified as rural.  

I would try to put down as much as you can, because it’ll lower your monthly payment and the amount you pay overall.  20% is usually the standard, but there are definitely options for people who can’t afford that.  I live in a horribly expensive area where 20% would be into the six figures, so DH and I opted to do less, but with a conventional loan and overpaying on our monthly payment so we minimize the amount of PMI.

I am not a mortgage lender or in the finance world.  This is just what I learned as DH and I went through the home buying process last summer.

MrsSparkle10:  

Post # 13
Member
42510 posts
Honey Beekeeper
  • Wedding: November 1999

MrsSparkle10:  Where do you live that you can eat on $75/month??? That’s hardly 2 bags of groceries here.

Remember that people have babies in apartments all over the world. You could also rent a house so you get used to the expenses associated with a house.

Post # 14
Member
2782 posts
Sugar bee
  • Wedding: November 2013

MrsSparkle10:  I personally think it’s hard to give other peope a budget– I have no idea what you consider “musts” and things you are willing to live without.

I also don’t know where you live– and the cost of everything is different everywhere.

 

What I can tell you is:  if you’ve been managing to live off of $16k/year- and that includes everything– you’re amazing, and you shouldn’t have a problem with a baby with $65k, even if your housing costs go up.

 

Your ultility costs are going to go up in a house– and it will depend on how well the house in insulated, your use habits, etc….

The cost of a baby doesn’t have to be a lot– but it can get to be a lot if you decide you have to buy every new baby gizmo/product out there LOL

I know there’s the experience of being a new mom, and learning things on your own– but if you have it in you, skip all the “outfits” for baby (especially when they are 0-3 months)– they are most comfortable in onsies/pjs, and cute as a button in pjs as well.

I have a six year old– if I knew then what I know now– I’d buy onsies/pjs,  aden and anais swaddling blankets, aden and anais dream blankets for heavier blankets– mam bottles, if you use bottles.  I’d also use the Honest Company to have supplies/diapers delivered each month- although we don’t have a need for diapers right now, and they weren’t around when DS was a baby- we do use them for household cleaning/laundry/etcc and it’s really convenient and affordable.

 

I don’t have any other wise words for a budget specifically because it’s hard- as I mentioned above….but there’s a little advice for baby I guess 🙂

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