Recent comments in /f/personalfinance

ESLTATX t1_jdu3cef wrote

Reply to comment by [deleted] in Preparing to buy our first home by [deleted]

There's a lot of different loan options out there! Down payment assistance, first time home buyers, closing cost assistance. You just gotta dig deep for those lenders. Try local first and then try national lenders

And congrats on your promotion, too!

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ESLTATX t1_jdu2okk wrote

Reply to Preparing to buy our first home by [deleted]

We just finished up applying with 12 different mortgage lenders. Only ONE asked us about information on our credit reports. Questions such as, "how much do you pay each month, is your car payment really that high, how often do you make extra payments?" Questions like these helped us get a 255K loan, and keep in mind that we make around 100k total together.

We explained to them that we pay off the credit card in FULL every single month, and pay $40 extra towards our cars. Everything else is about to be paid off in the next 3 to 4 months and we'll be debt free. At any rate, I have been throwing extra payments every month to pay down loan balances to make ourselves look less risky to lenders. (all of my loans, except for my car, are interest free)

All this to say, and I'm not even sure where you're at, we're in Austin, Texas but moving to San Antonio, that we both had significant savings about 50K combined, and a gift of 85K that is being used for a downpayment. Our credit scores are both 775+ and we got a really good deal. But that deal was able to be offered because I was able to drive uber/lyft, donate plasma, and work after school to throw at my stupid debts.

I hope yall are able to get your loan and home eventually, though! but pay off that debt BEFORE applying anywhere, and wait until your credit scores update.

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Throwawy22480 t1_jdtzptz wrote

Reply to Preparing to buy our first home by [deleted]

You clearly came on here to hear everyone tell you one single answer which is, “yes”. But the obvious, blatant answer is no. But you’re probably going to go ahead and do it anyway because it seems your mind has already been set.

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acciograpes t1_jdtzlo3 wrote

Reply to Preparing to buy our first home by [deleted]

You guys need a strict ass budget. You’re drowning in debt. You can’t afford to eat out or order food for a few months. You need to shop for cheaper car insurance and drive less and cut out all unnecessary spending and live like months for a bit. Your credit card debt and personal loan are killing you. You cannot afford a house for awhile. Congrats on the new jobs but time for a budget.

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djstudyhard t1_jdtz8fn wrote

Reply to comment by [deleted] in Preparing to buy our first home by [deleted]

If you’re so confident in your skills in investing then use all that money, pay off your debt, then reinvest in a few months again. If it was so easy and you are so wise that should be no problem for you. You’ll be a billionaire in 5 years tops. If that seems like a tough pill to swallow then you’ve got your answer (time to liquidate while you’re ahead).

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DeluxeXL t1_jdtz0bg wrote

Reply to comment by curbside319 in Fixing a basis mistake made in prior years on tax by curbside319

>Can I do the above and then also submit my 2022 taxes in parallel given that now I know that my 2021 basis was $5500 and that unblocks me from finishing up my 2022 taxes?

Yes.

>Also just curious do you think I'm in for a sizable IRS penalty based on the error?

No idea. Pay the tax you can calculate and wait for the late bill.

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Peanuteatspoop t1_jdtxg9c wrote

Reply to Preparing to buy our first home by [deleted]

OP, you are only a few years into investment and options while the collective of us here have seen it for the last few decades. Most people who post here because they want to improve their situation. I've seen a lot of good advice already. You can take our advice or not, but just know that being humble and aware of the limitation of your own knowledge are the foundation of improvement.

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curbside319 OP t1_jdtwwes wrote

Reply to comment by DeluxeXL in Fixing a basis mistake made in prior years on tax by curbside319

Ahh ok, I just did 2021's 8606 form exercise and line 14 came out to be ~$5500. Then let me know if this is correct...

You said I should "Once that's done, redo your entire tax return because you had taxable conversion that you didn't include, which changes Form 1040 line 4b and everything downstream. Compare the old and the new tax returns and fill out Form 1040X.
Mail the signed Form 1040X and 2021 Form 8606."

Can I do the above and then also submit my 2022 taxes in parallel given that now I know that my 2021 basis was $5500 and that unblocks me from finishing up my 2022 taxes?

Also just curious do you think I'm in for a sizable IRS penalty based on the error? Should I write a note to them and say it was an accident and hope they will be lenient? My first time ever having this happen...

Thanks so much, appreciate all this

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