r/Mortgage

I'm a mid-40s F, married, with four young kids. We are relocating to California and I'm wondering how much house we can afford. Would buying a $3 to 3.5M house reasonable for us? What is the upper limit of a comfortable purchase for us? Summary of income, net worth, and a guaranteed inheritance below.

We could easily do a $2M downpayment and could also pay for the entire house in cash by accelerating a future inheritance if that would be wise. We would qualify for healthcare mortgages if we go that route, so no PMI. Credit scores are excellent.

I'm expecting maybe $25k per year in entertainment/travel expenses. Otherwise we are pretty low key.

Goals are to fully pay for our kids' college/graduate educations (hopefully in-state in the CA public university system) and give them sizable down payments for their future homes.

ANNUAL WORK INCOME: ~$900k, including $600k 1099, $300k W2.

SUMMARY OF CURRENT NET WORTH: ~$4.35 million, of which less than $500k is taxable.

- $1.175M in Roth IRA

- $235k in traditional IRA

- $835k in taxable brokerage accounts (but tax basis is $800k, so mostly tax-free)

- $860K in 529 education accounts (withdrawals will be tax free)

- $750k house with no mortgage

- $500k in other real estate

- No car payments.

SUMMARY OF FUTURE INHERITANCE:

In today's dollars, $5.4M though more like $4M after taxes on the estate and IRA withdrawals. This is an inheritance from my widowed parent, who pays for their own expenses from other assets entirely. So please assume that the inheritance is a certainty when giving advice. I do manage my parent's finances in their entirely and I'm also my parent's only child/only heir. My parent happy to have me handle the money however I believe is best for my family.

Most of the inheritance money is currently invested in total US stock index funds. I do have the option for my parent to liquidate a $3.5M traditional IRA at this time, have my parent pay the taxes from those funds, and then put the remaining amount towards my CA house to avoid having a mortgage. It may make sense to liquidate the traditional IRA anyway because the tax bill if inherited as a traditional IRA would be even higher for me later due to estate taxes and my higher state income tax in CA vs where my parent lives. Alternatively, instead of using the traditional IRA funds to buy my house in part or in full, I am also considering having my parent roll the $3.5M traditional IRA into a Roth IRA. Then I would still potentially have to pay estate tax on the inheritance, but no income tax.

Thanks for your thoughts!!

I was in the process of refinancing my mortgage with a lender and had already signed intent to proceed and the disclosure package. Also signed papers for the title company. I recently got laid off so the refinance was not able to go through and the lender put a rate lock extension. They sent over new disclosure package for me to sign. Is it to late to back out and cancel the refi all together? An appraisal had also been done but i have not paid for anything yet. Will I be responsible for any fees?

Hi, I am looking into purchasing an affordable townhouse. I am wondering if anyone recommends a particular mortgage lender for this? It is also my first home I am purchasing but I was told that they don’t typically do grants for the affordable homes. I do have about 3-5% to put down with a 680 credit score. I am also looking to go through this process as quickly as possible as the affordable homes do get taken very quickly and my living situation is not great right now. Any advice is appreciated.
Thank you!

I have a question for underwriters and loan processors,loan officers, lenders, etc. New and Experienced. New to the field and trying to prepare myself the best. Thanks. 🙏 i

What is the single most common avoidable underwriting condition, delay, or surprise that repeatedly wastes time, kills momentum, or jeopardizes closings?

Also if you don’t mind, and what information do you wish you had earlier in the process?

So I recently passed my exam in FL. Submitted my MU4 form. Passed FBI and waiting for the state to respond. There is no bankruptcy or foreclosure. Recently was wrongfully terminated ( currently in litigation ) from my previous employer. Not related to mortgage industry. Was earning $130k a year. Naturally if I’m unable to secure a good paying job my credit will be affected.

Fast forward to today. Applied at Amerisave and was denied because they felt I might have licensing issues.

Did I just spend $500 in classes, license fees, 6 months studying for nothing? Am I SOL? Will no one hire me? Will FL deny my license? UGH 😏