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BeaumontBengal 
LSU Fan
Nashville, Tennessee
Member since Feb 2005
1745 posts
| Buy or Rent (Posted on 1/28/13 at 11:55 pm)
I'm about to graduate residency and move back home - to luxurious Beaumont, Texas. Needless to say, my salary is about to increase substantially. However, since my salary is only $50,000 right now as a resident, the bank is telling me they cannot get me a mortgage loan for a house. I didn't think I was going crazy telling them I was looking for a $250-300K house with about 40-50K downpayment. They are telling me that I will need to provide a full months paycheck to them before they can get me a loan. I won't have that until I've been home 2 months (taking 2 weeks off after graduation and pay at the end of each month so won't have a full month paycheck until the second month). They asked me for my signed contract with what my new salary will be, but that did not help evidently. I'm getting kind of fed up with them and am now starting to look at renting. I had not previously wanted to rent as I have always rented during school/residency but now that I think about it, I could live quite comfortably and save upwards of $100K in my first year. Then I could decide to buy/build or whatever after a year. What do yall think? I'm single and really don't need a big house. Was only looking at 3 bedroom places anyway. I am fortunate to have no educational debt and I just paid my truck off last month so I really wouldn't have any other expenses.
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lynxcat 
Rutgers Fan
Member since Jan 2008
13338 posts
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Either go talk to a new bank or just rent for six months and take your time with the house purchase.
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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
20525 posts
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Dang you are in a wonderful place, first of all, so congrats on all the hard work.
Since you are moving home, and it seems like you will be there a long time, just go to another bank like
Lynx said. I'm sure one would look into your situation a little and see there is way more to it than current salary.
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jimbeam
LSU Fan
Patrick F. Taylor
Member since Oct 2011
16875 posts
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Personally I'd rent for a year and save up some cash 
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bunky
LSU Fan
FREE EL GUACHO
Member since Jul 2011
4463 posts
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That bank is retarded, I'm sure there are tons of banks that would cream their pants at your situation.
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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
6382 posts
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My advice would be to rent for a year. You want to make sure you like the job/practice you are joining in Beaumont before making a big purchase like that. Save another 50-75K and buy your dream house soon that you can see raising a family in, while interest rates are low.
I'm sure you could easily find approval for that loan at another bank/credit union/mortgage broker, but I'd still wait.
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BACONisMEATcandy
LSU Fan
My opinions are my own
Member since Dec 2007
37938 posts
| re: Buy or Rent (Posted on 1/29/13 at 8:10 am to jimbeam)
quote:
Personally I'd rent for a year and save up some cash
This
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BeaumontBengal
LSU Fan
Nashville, Tennessee
Member since Feb 2005
1745 posts
| re: Buy or Rent (Posted on 1/29/13 at 8:24 am to bunky)
Bunky, I figured there would be no problem for a debt free anesthesiologist to buy a nice small home either but evidently there is. The thought of saving up some cash is feeling like the smart thing to do now that I've gotten over the initial shock that I may need to keep renting. I always thought I'd be buying after I finally finished my training, though.
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dewster 
Maryland Fan
TN
Member since Aug 2006
4746 posts
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You are from Beaumont, so you probably know the area pretty well. I'd normally say rent for a year and get comfortable with the area before you buy.
I'd just get a 6 month lease or live with family and accumulate cash and build or purchase your dream house somewhere nice. Extend lease as needed.
And congrats on graduation.
This post was edited on 1/29 at 9:37 am
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BeaumontBengal
LSU Fan
Nashville, Tennessee
Member since Feb 2005
1745 posts
| re: Buy or Rent (Posted on 1/29/13 at 11:29 am to dewster)
The nicest apartment in Beaumont only costs 1100 for a 900 square foot 1 bedroom with study. A whole years rent would be $13,200. Decent area of town. 3% interest on a $250,000 dollar loan is $7,500. Interest, property taxes, any home maintainance, etc could get pretty close to $13,000 after 1 year, so I don't think I would just be wasting away too much money if I rented for a year.
This post was edited on 1/29 at 11:30 am
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GenesChin 
Auburn Fan
The Promise Land
Member since Feb 2012
3450 posts
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My girlfriend's family is originally from Beaumont. There is nothing to do there but I bet you could rent cheap for a few months while securing the loan
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Fat Bastard 
New Orleans Saints Fan
Paradise
Member since Mar 2009
13671 posts
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RENT!!!!!!!!!!!
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KG6
LSU Fan
Member since Aug 2009
662 posts
Online
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Hijack- My comopany will be relocating in a the next few years. I currently own my house and like owning my own home. When I move, I will have the resources to buy a house in this new location, but I would expect to get be promoted within the next 4-5 years which would require me to move out of state. I don't want to buy a house and have to sell within a year or two. I am married and we expect to have kids. I don't want to raise kids in an apartment, but at the same time an equivalent house to what we currently own would be pricey to rent. How much of a hit do you take having to turn a house that quickly assuming the housing market stays stagnant? Would I just be out closing costs, or am I overlooking some other detrimental effects such as credit score?
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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
116244 posts
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They won't loan you money for a house that's 400-500% of your gross income?
Color me shocked
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Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
66297 posts
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tl;dr
Rent.
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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
4822 posts
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Yep, you will need that first check stub. I'd find out what home prices are trending like, and if its turning into a seller's market like it is here, I'd buy ASAP, as rates will tick up with spring market.
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BeaumontBengal
LSU Fan
Nashville, Tennessee
Member since Feb 2005
1745 posts
| re: Buy or Rent (Posted on 1/29/13 at 9:03 pm to ItNeverRains)
Think I'm going to rent, atleast for 6 months. Property tax was just over $6000 at the place I was most interested in buying and interest on a $250000 loan would have been about $7500. Rent will be just over $13000. Looks like I'd be pissing away $13000 somewhere next year either way. Not truly in love with the place I was looking at buying anyway. Going to take my time and save up. Thanks for the advice and the congrats fellas. You'll find me at the apartment's resort looking pool scoping out the ladies this summer.
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