We’re Buying a House!
Posted by Lynnae on July 7, 2008
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We found the perfect house for us.
That’s my big news. I know some of you must be picking your jaws up off the floor, because it was only a couple of weeks ago that I talked about being comfortable renting, and that buying a house was a “someday” thing. And in March I said, “We will be renting for the foreseeable future.” So what changed?
We Found a House
I love to browse the real estate listings in our area. Since we moved to Southern Oregon six years ago, I have frequently browsed the websites of our local realtors. In the town we’re in, the price for an average starter home is $200,000 and up, well above our price range.
As I was browsing real estate sites over the weekend, I found a house that seemed too good to be true. A 1996 manufactured home (permanent foundation) on almost a quarter of an acre. 4 bedrooms, 2 baths, plus a den. In our price range.
There was only one picture on the listing, and that was of the outside of the house. The listing said the inside needed some work. I called my dad, who lives nearby, and had him go take a look at the outside. When he approved, we called a realtor and toured the inside. To say it needs work is an understatment. But it appears to be all cosmetic. So far so good.
It’s in a Town We Like
The house isn’t in the town where we currently live. It’s actually closer to my husband’s workplace, though it’s farther from church. It’s in a different school district, but it’s in the one other school district we’d consider moving to.
My daughter is OK with switching schools, and my son is just starting kindergarten, so he doesn’t have any local friends yet anyway.
A huge part of the reason we made the offer on the house is that our daughter is starting 5th grade. In our area, kids start middle school in 6th grade. If my daughter is going to have to switch school districts, I’d rather her have another year in the relative calm and safety of elementary school than have her switch districts in middle school.
We Qualified for a Loan on my Husband’s Income
After walking through the house twice and taking my dad’s handyman friend through to do a preliminary check, I called a mortgage person. Over the phone he told me we qualified for an FHA loan on my husband’s income alone, which shocked me. But when I ran the numbers myself, I was surprised to find the mortgage official was right.
The mortgage payment will be a stretch for sure. But, I’m currently bringing in enough money every month to almost make the mortgage payment, leaving my husband’s entire paycheck for other expenses.
Furthermore, by only using my husband’s income to qualify, we know that if times get tight, I could go out and get a regular job to make ends meet. So we have a safety net.
I’m going to be working on the mortgage aspect today, and I should know more in the next few days. Things are looking positive, though.
We Will Have Pretty Much Instant Equity
We’re putting down 3%, which isn’t much. However, before we even move into the house, we will be repainting the interior and replacing the flooring. Once that is done, the house should be worth a whole lot more.
We’ve closely examined all the comps in the entire town, and we have a pretty good idea of where this house should appraise out with a little work. A low estimate will still give us some equity, so there’s little chance of us going upside-down in our loan.
So all in all, this is a good investment.
We Can See Ourselves Living There for Years to Come
At almost 1800 square feet, this house will give us plenty of room to grow. Once we buy, we don’t intend to move again. Ever. Or at least until the kids are out of school.
In the end, I think the best time to buy a house would have probably been a year down the road. However, it’s not often that an opportunity like this comes up, where a house in the country, yet close to the city, with nearly every “want” we have in a house is available. And it’s even less often that a house like that is in our price range.
And as I said before, a huge factor is where my daughter is in school. Though financially it makes sense to wait a year, it doesn’t make sense considering where our daughter is at in school, and to us that’s more important.
I was hoping to hear back from the realtor before I wrote this post, so I knew for sure our offer was accepted and signed. Unfortunately, I haven’t heard back yet. We’ve been working out the details of the offer in counteroffers back and forth with the seller. I really have no doubt that we’ll come to an agreement soon, and hopefully I”ll be able to announce that later today.
So stay tuned with how all this goes. I’m confident that it will work out, but we still have to jump through the financing, inspection, and appraisal hoops. I’ll update as we go along. It’s going to be one crazy summer.
Photo by netan.
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Prayers Needed
Posted by Lynnae on July 6, 2008
I know I said I was taking the day off, but I just found out that Dylan, the young boy with leukemia whose story I’ve been following for the last year, passed away yesterday afternoon.
He leaves behind his mom and dad, and three younger brothers. Please pray for them during this difficult time. I cannot imagine the pain of losing a child, and I’m sure their grief must seem unbearable right now.
Thank you.
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Weekend Roundup - This is going to be quick edition
Posted by Lynnae on July 5, 2008
Wow, I can’t believe it’s Saturday already! It seems like I say that every week. This summer has been flying by for sure! And the rest of the summer promises to be more of the same. I can’t wait to tell you all what I have been up to, but I’m going to wait until Monday. Nothing is for sure yet, but I should know by tomorrow night whether our plans are going to happen. Is that cryptic enough? So hope to have big news for you Monday.
Since this week has been so busy, I’m going to take the day off tomorrow to gather my thoughts. I’m also going to make today’s roundup short.
The Frugal Roundup
It’s been a while since I’ve done an M-Network roundup, so here are my favorite posts from the M-Network this week.
- The Other America - Commentary of Food Stamps and the Economy at Cash Money Life.
- Walmart: There is a Price for Cheap at Gather Little by Little.
- Long Term Disability Insurance - First Steps at I’ve Paid for This Twice Already.
- Are We Financially Worse Off Than Our Parents? at Moolanomy.
- Are You Responsible for Husband or Wife’s Debt? at Mrs. Micah.
- 5 Ways You Can Save Money on Gas at My Two Dollars.
- Getting Rid of Unwanted Things Day at Plonkee Money.
- Incentive to Use My Chase Card at Single Guy Money. I don’t think there’s an incentive big enough to make me use a credit card again!
- Roth 401k - Why These Retirement Plans May Be Bad for Your Wealth at The Dough Roller.
Have a great weekend, and I’ll see you back here on Monday!
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I am not a financial expert. I'm just a wife and mom doing the best I can to live a frugal life and get out of debt. Like any human, I make mistakes. I write this blog out of my own experiences, and nothing I write should be taken as expert advice. If you need financial advice, please consult a professional.
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