David Wattenbarger

CFP®
Personal Finance, Retirement, Investing
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“With over 16 years of experience in the financial industry, David Wattenbarger provides fee only investment management and holistic financial planning to a select clientele.”
Firm:

DRW Financial

Job Title:

President

Biography:

David Wattenbarger is the President at Drw Financial in Chattanooga, TN and has over 16 years of experience in the finance industry. He started DRW Financial as a fee-only financial advising and planning firm after working for twelve years “behind the scenes” in financial services, where he learned a great deal about how best to serve the needs of his clients.

David has found it valuable to continue learning, and earned his CFP® designation, as well as the Chartered Advisor in Philanthropy® designation, which aligns well with his desire to help clients align their financial lives with their own unique values. David's prior professional experience includes serving as a general principal, options principal, and municipal bond principal for an independent broker dealer, as well as extensive work with other financial professionals on a consultative basis.

David's personal values revolve around carving out quality time with his family and making the work he does worthwhile and valuable to his clients.

Education:

BA, College Scholars, University of Tennessee, Knoxville

Assets Under Management:

$7 million

Fee Structure:

Fee-Only

CRD Number:

4183339

Disclaimer:

INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES PRODUCT, SERVICE, OR INVESTMENT STRATEGY. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER, TAX PROFESSIONAL, OR ATTORNEY BEFORE IMPLEMENTING ANY STRATEGY OR RECOMMENDATION DISCUSSED HEREIN

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    Real Estate
Should I buy a house now, or wait until I have 10% saved for the down payment?
100% of people found this answer helpful

There are a several pieces of this scenario worth talking through.

As you describe it, your financial condition shows some planning and preparation.  Having committed to saving a significant percentage of your income for retirement and having accumulated the emergency fund is commendable.  Prior to taking on debt to buy a house, you may also want to consider your insurance coverages; even with "stable income", unexpected or outsized expenses related to illness, death, or disability can wreak havoc on an otherwise orderly financial plan.

Another consideration is the cost of your financing.  In many cases, banks will require a 20% down payment (or 20% equity in the home) or they will require you to purchase "private mortgage insurance" (PMI); PMI could amount to ~ 1% of the cost of your home, annually.  This obviously adds to your cost and should figure into your math.  Independent of PMI, homeowners with higher amounts of equity in their home may enjoy a more robust buffer against economic downturns and have a greater degree of flexibility if they wish to later sell, refinance, or convert their home to an investment property.  Also, in terms of financing cost and dependent on your credit score and the bank you choose for your mortgage, etc, your amount of down payment may impact the actual interest rate available for your loan.  All other things being equal, a larger down payment makes you a better prospect for the bank and may get you a lower rate.

In regards to the prospect of rising rates: it is hard to say with a high degree of certainty if rates will rise, when, for how long, and by how much.  While you may not be able to predict the future path of interest rates, you can know that having more cash to put down on the home purchase will mean a lower dollar amount financed, that you may avoid PMI, and that you look like a better credit risk to the bank.

Good luck, and keep up the good work!

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