Number Crunching

I'm pretty spoiled in that the rent and utilities I currently pay are relatively inexpensive. In buying a home, I don't want to be getting into a situation where I would be putting all my money into the place I live and not be able to enjoy life. That'd be too stressful!

The "accountant" in me has comes out to play whenever I might be interested in a home to buy. On each of the two houses I've been interested in, I've crunched the numbers to see if I could really afford the payments, taxes, insurance, and utilities.

I was pleased to learn that I not only can afford the bungalow at the asking price (but I'm not going to pay asking price!), I would also have enough money to make improvements over time. How great is that?!

I talked to my bank again today and got re-approved for a loan. The other approval expired the end of last month. The loan officer was very friendly and very helpful. In addition to a "no fee" mortgage, I also am eligible for unemployment/disability insurance that the bank will pay premiums on for the first year. She said the bank will do that because the first year is always stressful for a first time homebuyer. It sure would take a load off my mind! After the first year, it can be cancelled. Also with the mortgage program, I won't have to escrow my taxes and insurance. Most other banks require this and it was a thorn in my side to think the mortgage company would be using my $$ for a year when I could be putting it in a savings account and earning interest on it myself. I also wouldn't have to pay PMI (private mortgage insurance) even though I'm putting down less than 20%. The loan officer also told me the interest rate went down since my last preapproval. Good to hear!! :D

I may just end up making an offer on a house soon!