Aug 6, 2007

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!

8 comments:

stitcherw said...

It all sounds great, good luck with all the paperwork and such. One of these times you'll have to show us a picture when it gets closer to being final.
Sue

Kathryn said...

Hooray! It's always good to be conservative. When we bought our first house we had an absolute fixed monthly cost we were willing to pay. The seller would not come down on the price, but kept lowering the interest on the second loan they were carrying back for us and eventually we bought the house at a monthly payment we could afford. It will be nice to get a house AND make a few small improvements in it right away.

monique said...

Yay! How exciting! I hope the contract process goes smoothly for you :)

Jenna said...

That's excellent news, Meari! Best of luck. :)

Jenna said...

That's wonderful news, Meari! I'm glad that the numbers work out and wish you lots of luck in getting a house that fits you.

Greg said...

YAY Meari! Owning will be much better for you then renting. So many positives in owning your own home. You will be much happier owning then renting, plus you will be putting all that money into equity. YAY!

glenda said...

Good luck! I enjoy your house hunting updates.

BLGH said...

The finances sound like they will work for you. Yea! I hope you find something and make an offer soon.
Brenda