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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Tezz24 on January 31, 2018, 08:43:04 PM

Title: Timing Down Payment
Post by: Tezz24 on January 31, 2018, 08:43:04 PM
We are starting the house hunting process. And since we are in a competitive HCOL area it could take some time (year?) to find the right place. The majority of our money is invested in the market (vanguard etc.).

When do you recommend we move our money out of the market into our checking/savings accounts for the down payment? Keep in mind, this is no small chunk of change. Now? When we make an offer? When we get accepted? Is there a good reason to wait?
Title: Re: Timing Down Payment
Post by: newgirl on January 31, 2018, 08:45:16 PM
Just my relatively inexperienced two cents, but I'd move it now. If you need the money within a year(ish), to me that seems like too short of a timeframe to be invested in the market. I'd hold cash in a money market account and try and get maybe 1-2% interest, not sure what yields are like these days though.
Title: Re: Timing Down Payment
Post by: waltworks on January 31, 2018, 08:54:08 PM
If you are serious about the house, pull the money now.

-W
Title: Re: Timing Down Payment
Post by: Finances_With_Purpose on January 31, 2018, 09:27:24 PM
Agree w/ the rest.  Markets are for decades, not single years. 
Title: Re: Timing Down Payment
Post by: Tezz24 on January 31, 2018, 09:42:31 PM
Thanks. That's what I assumed but since we're just starting out here I wanted to check.
Title: Re: Timing Down Payment
Post by: Fishindude on February 01, 2018, 08:52:07 AM
I always carried a line of credit with my bank for stuff like this.   Doesn't cost anything if you don't use it, and with a simple phone call or email to my banker I can quickly have the money in my checking account.