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June 22, 2012 at 9:06 pm #31245
That is so sweet of you Will.
Loans are so scary. My husband and I have really lucked out being able to pay cash for our house (except for 30% that the previous owner financed at next to nothing interest), and for the land we bought last week. Tying myself down to a payment for however many years (even with pretty much guaranteed good income) scares the crap out of me.June 22, 2012 at 9:40 pm #31247Those numbers are pretty similar to what my realtor is coming up with but a little lower because she purposely estimated the interest rate, insurance, and property tax high. A 15 year loan is not an option with the USDA program but I did ask the realtor if there are any penalties for early repayment with the USDA program. She said there are no penalties for paying it off early. You sign initially for 30 years but you can pay extra principal whenever you want. So as I become more successful throughout life and make more money, I can make extra mortgage payments and pay off the house before 30 years. Plus, if you lose your job due to the economy this program pays your monthly mortgage payment for up to 2 years while you find a new job, so you don’t go into foreclosure.
JK, how on earth did you have enough cash to straight up buy a house? Is your husband a millionaire or something? My ex’s dad makes six figures and he can’t even buy a house cash.
June 22, 2012 at 9:45 pm #31248ha, not quite. We managed to buy our current house just before prices went up a lot, but property values here are still quite low compared to other countries. Plus when we bought the house we were both working a lot and saving heaps.
June 22, 2012 at 10:03 pm #31249@Anna, here’s my unsolicited advice: wait a bit and save some cash. I absolutely agree with you that you don’t need to wait for a husband to buy your home! Hell, I’m about to buy a condo, sans husband as everybody knows. But here’s the deal: you’re fishing for some change in your life, and I don’t blame you, but, if I were you, I’d make the change that you move out of your rental with that shitty landlord. I just saw your other thread. I’m not sure what your lease says but I’d start there in terms of whether he’s in breach and how you can get out of your lease. I think you said you pay $500, which I think is actually kind of steep for your area. I remember paying $500 for a super swanky 2 bed, 2 bath apartment with a garage and a pool in Missouri. … I’m just saying, you could probably move into an apartment that costs less and then save $$$ – maybe like a few grand in the upcoming year. That would be killer to have. Because then when you get your house, you will have cash to make repairs, etc. I budget $1,000 for every $100,000 you borrow. The mortgage + tax + insurance + a little extra = about $1,000 for every $1000,000 you borrow. … Maybe a little less, but I think it’s wise to budge $1,000 per $100,000 for unforeseen shit that happens, and it always does! Whether it’s a broken AC or what not, owning a home drains cash. Much like my drinking habit.
The point is: I think you can accomplish that change you need cheaper. And then over the course of the year while you save, scope out the perfect dream house for you, no? There, that’s my unsolicited advice. And now I may take a dose of that myself and wait a bit longer. Though I’ve been waiting for 5 years, and saving. I think I’m ready. Plus, this now parking garage shit is really making me want my own condo already, with a garage. God, I should’ve have called that bitch a bitch. I could still be parking there. Lesson learned.
Anyway, think about what Will and Iseeshiny said, because I think that’s some solid advice.
June 22, 2012 at 10:22 pm #31250FWIW–I’ve decided I have a new motto in life. Always listen to Addie Pray. 1–Because she’s SO COOL. I wouldn’t want someone that cool disagreeing with my life choices, because that would make them UNcool amirite?! 2–She’s a smart ass lawyer who knows all kinds of shit. Shit I don’t know and refused to learn.
June 22, 2012 at 10:35 pm #31255@Lili, I love you, and your logic is sound. I approve.
June 22, 2012 at 11:23 pm #31285Don’t ever wait to do something you really want to do until you’re married. Just. Don’t. If it’s what you want for your life, go make it happen for yourself.
June 22, 2012 at 11:41 pm #31294@AnotherWendy–Oh kay….BUT, what about all the talk of precautions and safety nets we had in the threads. Its never a bad thing to have some safety nests (esp if they’re monetary) and a nest egg=safety net
June 22, 2012 at 11:53 pm #31300I agree you need safety nets, and for home buying that means a nest egg. What I’m saying is that you can create those safety nets on your own, don’t wait for another person to provide them or help provide them. A previous poster said Anna should wait until she’s married to be a homeowner to have someone help shoulder the burden. That’s what I’m taking issue with.
June 22, 2012 at 11:58 pm #31301@Another Wendy–YES! I agree completely. Although to be 100% honest about my OWN life, unless I have a person holding me accountable–like an SO–i’m so spending my nest egg on designer fashions/makeup or vacations
its the sad truth about Lili. BUT no reason to say taht Anna can’t save up 
June 23, 2012 at 12:09 am #31302I love a vacation myself! My 94 year old grandmother will still say she never regrets the vacations she and my grandfather took when they really shouldn’t have been spending the money. It meant they lived on the edge financially until he died, and she hasn’t had much to live off since he died thirty years ago. But she swears she gets more joy remembering their annual spring trip to NYC, fall trip to San Francisco and every other year in Bermuda. They did those trips for probably twenty years.
June 23, 2012 at 8:04 am #31304I just re-read Will’s comment above and it’s really good. Anna, listen to Will. Also, Will never said Anna should wait until she’s married to buy a house, he just said he’d rather buy a house with a spouse. And for good reason: an extra person to shoulder the burden. Now, the alternative to buying a house with a spouse is not running full speed ahead with buying a house, right now, alone. As Will advises, save up so you have a certain amount of cash *after* closing costs etc. are paid.
June 23, 2012 at 3:37 pm #31313Oh, I’ll be waiting a bit anyway. I’ll be lucky if I get to move by the end of the year, because the USDA program requires a home to be in good condition to qualify so we are looking for homes in good condition that are also within my price range, and I have requested listings that are in very private, secluded areas. The listings are coming in very slowly so far. Between viewing homes, re-viewing ones that I’m seriously considering, making an offer, negotiations, and then waiting for closing, I anticipate this process will take at least six more months. In that time, at the rate I’ve been saving, I will be able to put away at least another $2,000 in savings. Possibly more, because I’m still trying to get a promotion at work. The Claims Associate job went to a very deserving person but I am now trying for Claims Assistant, which also pays more than I make now. My realtor said it usually takes at least 60 days for the final approval from the USDA program because they are all backed up with applications.
Given that timeframe, it sucks to think I have to keep living here. I don’t want to sign a full-year lease somewhere else when my dreams are less than a year away, and not very many places offer six month leases. I would sooner live in my car than move back in with my ridiculous right-wing parents. They can’t handle being in the same room as an alcoholic beverage! I guess I’m kinda stuck here until the whole process is over.
June 23, 2012 at 3:54 pm #31314Here’s the best advice I have for you Anna. I would move out from where you live now. I’d move somewhere else that is similar in rent or a tad bit more, wait a year, and then come back to buying a house when you have your ducks in a row. For me, and how I’m projecting my feelings of what you are doing with the situation, this seems to be heavily focused on finding yourself after your breakup. It just seems way too rushed and I think you will end up in a much worse position if you follow through and buy a home right now. That’s my true feelings, along with the money, on you buying a home.
I think you need a couple more things to fall into place and truly get into a single girl routine. Since your break up you have talked about moving to Cali, getting a dog, and buying a house, which are all VERY big responsibilities. Your confidence and self-esteem have been ruffled and I can see why you want to get back the power from your ex. I just don’t want to see you doing it like this. You wait one year and let some other chips fall into place and you will feel AMAZING signing those mortgage papers.
Rates aren’t going anywhere till most likely 2014 or 2015. I work in the banking industry, so I follow rates for a living. You will find the same deals, rates, and most likely houses this time next year. The market is very soft and the people that are buying are actually buying spec houses and are not very focused on already built homes.
For most individuals, or couples, that can afford a house rather build since they can get more home today than they could 5 years ago. Keep applying for positions at work and let those raises come in. Also, keep putting back money in the meantime. I just want to see you embrace singledom in a better way than the way I’m seeing you do it now. You can totally disagree with me, and even think I’m an asshole for saying such a thing, but I rather say my peace on the matter and let you think that way about me, than see you make a “mistake” that is not easy to get out from under of.
June 23, 2012 at 4:09 pm #31316Even if your mortgage program doesn’t require a down payment, I think having a comfortable nest egg before making such a big commitment is a good idea. Most financial advisers suggest having six months of living expenses saved, just as a cushion. Once you buy a house, you are responsible for ALL costs, so even if your mortgage is the same, you are on the hook for repairs, upkeep, landscaping, and everything else.
I think Will’s advice is great! It sounds like your current living situation is pretty terrible, so moving to a better place would be a great idea while you work on saving and finding the perfect house!
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