Housing

Well, we've officially started our official search for a home. We, well, *I* have been looking at everything online for the past couple of months and found a few favorites that ended up being bunk. (One was amazing, but had ridiculous property taxes--we're talking nearly $6,000 a year; one had a pool that took up the WHOLE backyard--no throwing the dogs out without worrying about them; and another seemed great, but after much thought, we realized it would have more issues than we wanted to deal with)

Today, though... wow. We found a house (I don't want to say THE house) that fit all of our criteria. The only thing that we've decided is a con is the master bathroom--Bobby hates the tiny room for the toilet in the corner, and I want a walk-in double shower. Now, the way the bathroom was set up, we could switch the shower and toilet room, and it would be fine (walk in shower where the little toilet room was, and a toilet open to the bathroom where the shower was. *I* thought it would work) BUT it would probably be an expensive remodel which would have to wait for several years. Other than that though, the house was as near to perfect as we've seen yet. We also have the option of building one (which, if we got everything ready pretty soon, we could have it finished by February--if we're lucky weather-wise.) but I don't know how I feel about that.

We went and met with a mortgage lender today (well, two actually, but only one of them was helpful) and he seemed pretty hesitant when we told him we wanted to ideally move in December. Our reasoning:
1.) we have a lease that expires December 31st,
2.) we can save up my income by then for at least a 5% down payment (depending on the cost of the house, of course),
3.) I would have Christmas break to settle the new place, rather than living in chaos until June when school gets out.

He told us we should wait till November to start the process of getting a loan, but it won't do us any good to keep shopping like we have been if we don't have an actual budget. (I mean, I know what we could afford, what I expect to pay per month, and what price range that leads us to, but the question is, will the bank lend us the right amount of money?) So, tomorrow, we should hear back from THEM to see what they think we could handle--which I told them, "we could afford 25% of our income (which is about x-amount) as a reasonable payment on a house each month/year, including taxes and insurance."

**FYI, most banks/lenders will allow up to 33% of your income for a loan--BEWARE!!! While this gives you more budget options (i.e. a bigger loan), you lose flexibility with your funds. I, for example, would rather have a lower payment each month for a longer term and pay a little extra on it when we can afford it (if you even add $50 a month to the payoff of your principle--be sure to specify-- you can pay off a 30 year mortgage in 20 years or less. Watch out for payoff penalties though...that can be a problem with some lenders.), rather than be required to pay the maximum amount we can for 30 years and getting screwed if something happens and we're strapped for cash. Then rolls in the credit card debt and declining credit scores. Oh, and (heaven forbid) foreclosure.**

So, I have little doubts that we can get a mortgage that will support what we've been looking at thus far. However, I have my reservations about MY student loans. Bobby's have lowered significantly in the past two and a half years, as he's been paying on them since he graduated. I however, JUST finished school and am still in my grace period (you know, since I've been "unemployed" by being a working student for the past 9 months). That debt to income ratio though----that's what I'm nervous about.

I'm sure you'll hear more about this in the near future....wish us luck with finding the "right" place for our forever. We really want a place that we can stay in for the next 15+ years. Did I mention we hate moving with a fiery, burning passion? Yeah. We do.