Scott and I have decided we are tired of paying rent every month and seeing the money go out of our pockets and basically into the air...bye bye money...It has bothered us for some time and now we are taking action!
We have decided to start looking at houses. Last weekend was our official "drive around and look". Are houses expensive everywhere or is Little Rock special for some reason?? A couple weeks ago when we started planning and putting our finances together, we realized that there is a whole lot that goes into buying a house. How hard can it be? Get a loan, make an offer, and BUY. We have realized that it's more complicated than that:)
And then there is the question of how much a month do you want to pay? How much of both of our income's do we included in what we can afford? Do we consider school districts? So many questions...Any advice?
All this to say I am really excited but it is a huge decision nonetheless and please pray for us as we seek to buy the house God has planned for us!
7 comments:
Don't forget to calculate the cost of property taxes and insurance into your monthly mortgage payment. Also, if you need to include closing costs and down payments into the loan, tell them that up front. Any mortgage company should be able to give you a good faith estimate for free, so be sure to ask for one before putting in an application.
Now is a great time to buy since the rates keep dropping!
You will love having your own home!
It is crazy deciding when there
are so many factors. Hopefully,
you can enjoy seeing a variety of layouts and styles, and then the Lord will give you peace about one!
So glad you got to spend time with
Sarah and Greta!
We decided the same thing 2 years ago, and due to the expensive factor have been working on our fixer upper ever since. But it is in a great neighborhood and is a great investment. Soon I will post before and after picks. I think the old saying buy the worst house in the best neighborhood worked for us, but we are do it your self people which saves money!
Don't spend more than 1/3 of your income on your mortgage, insurance and escrow payment to avoid overextending and keep yourself out of debt.
Realize that there are a lot of hidden costs in owning a home. For example as you organize, improve on and redecorate your new home you will have additional monthly expenses. Allow room in your budget to make your home your own over time.
Also, when you own a home you are your own landlord. If something breaks, you have to fix it or do without. Often there are consequences involved for not properly addressing problems (i.e. if the roof leaks and you just paint over it, eventually the ceiling will fall in and the roof will rot) Even if you don't budget for these items, don't allow other areas of your spending to get you to a point where you can't cover them if you need to.
If you buy a house that needs fixing up, get someone educated in it to help you figure out what the fixes you MUST do (even if just for style sanity) will cost to help you budget.
School districts affect resale value. Even if you don't plan to live there when your kids are in school, understand that your home may not appreciate like others.
Now is not a good time to buy with the sole intention of fixing and flipping a house.
Keep it fun! If life doesn't have you at a point where you HAVE to move now, take your time to find THE place for you that you love for the right price.
I am glad you guys are buying a house...this seems to be a good time to buy, rather than selling a house.
I LOVE to look at houses, it is more stressful though, when you actually have to buy, as opposed to just looking. :)
We have always considered school districts too...just for resale, as hopefully we won't be living here when Austin is in school.
Most of all, have fun with it!
Can't wait to see what you pick!
We are waiting to hear news on a new home for you two. What is the latest? Do you feel that there is a good variety in the areas your interested in? Keep us posted.
Love you!
Here's my two cents worth on the matter:
- Owning a house is far more expensive than an apartment. You have property taxes, home-owners insurance, higher utility bills, and the cost of upkeep & maintenance. Plus, there's the cost of interest. Over a 30-year loan, a $100,000 house will cost over $200,000 dollars.
- Owning a house demands time. Mowing the yard, planting shrubs, painting, remodeling, fixing the broken faucet, etc. Living in an apartment gives you alot of free time!
- The price of homes is declining nationwide, and will be for probably another couple years. So, you might buy a house now and have it be worth less in a couple years than it is now. It might be better to wait a couple years, and then buy.
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