April 3, 2012 10 Comments
So, it turns out that if you’re trying to figure out how much home you can afford and you’re trying to figure out what sort of homes fit in that price range that you’re going to find yourself in a position where you are pre-approved for a loan and find the perfect house at the perfect price.
And that’s really how it all started.
My realtor showed me quite a few places (about 25) that really made me doubt that I would ever find a home I loved in my price range. And then… he showed me THE house. He took me there on Wednesday. On Saturday I brought Mr. Woodpecker to see it. We both loved it and that day I made a very low ball offer ($5,000 less than list, the fridge stays, seller pays almost $8,000 in closing costs). They countered on Sunday saying the fridge goes, $4,000 less than list, seller pays $6,000 in closing. By Tuesday we have the inspector out to look at it and my dad came then to take a look at it. He said the house just blew him away.
So now I’m in the process of pulling together all my money for a closing date of May16th.
I did take the advice of my blogger friends and decided to go with the 30 year mortgage. Not because I couldn’t afford the 15, because I can, but because ultimately I liked the flexibility.
I’ve decided to pay the 30 year mortgage amount until the debt is gone and my savings is up to $5,000. Then I’ll start chipping down on the home mortgage by paying $500/month over.
Also – this is the best part – I’m only putting 5% down. HOWEVER, because of the option to pay upfront PMI at closing, I will actually not have to “suffer” through losing money every month to PMI. Why? Because that is part of what the seller is paying at closing. They’ll be paying $3,000 towards my upfront PMI and the rest of my closing costs. That will save me about $80/month for approximately 5 years.
The house is beautiful. It was one of those moments where I walked in and I just *knew* I was in MY home.
It passed inspection with flying colors. The A/C, furnace, water heater, roof and half of the windows have all been replaced in the last 2 years. There are a few minor issues, like the garage door spring need a safety coil and the painters painted the outside dining room windows shut. But these are very fixable issues.
The house is a 4 minute commute to my work and in a wonderful neighborhood. I couldn’t be happier.
Now we’re in the phase of me getting all the money from my personal mutual funds so that I can lock in my interest rate at around 4%. I couldn’t be more excited!