Apr 22 2009
I consider myself to be pretty cautious when it comes to spending money. I want to make sure I know all aspects of what I’m getting into.
That’s why I want to make sure we aren’t rushing into this “let’s buy a house” thing. We have about seven months before we’d need to close on a house. That should be plenty of time to research the process and make level-headed decisions.
We need to be prepared to walk away at any time.
If it’s November 20 and the house we want hasn’t passed inspection and there’s no way we’ll be able to close on November 30 — we’re done. Getting the $8,000 first-time homebuyer tax credit is a huge reason for why we want to buy now instead of waiting. If we don’t make a purchase that qualifies for that, then we’re going to keep on renting, even if that means we’re saying buh-bye to a great house.
The question I have to keep in mind is, “Will someone else want to buy this house too someday?”
When looking at all houses, I want to remember that someday, I’ll probably want to sell the house. If the house is too quirky or has traits that would make it generally un-sellable, then I should look elsewhere. If the neighborhood isn’t so good or the schools are lousy, I can’t waste my time there.
Finally, we need to be really real with ourselves. Can we seriously afford such a huge undertaking at this time?
We’re crunching numbers, and then crunching them some more. I’ll share my findings and ask for your input soon. If it seems like a decent house would be too much of a stretch for our budgets, we’re not going to do it.
We don’t want to contribute to a “housing crisis: the sequel.”
As I share this possible house-buying journey with you, please keep me in check. If I’m saying crazy things, call me on it.
Our next step is getting pre-approved for a mortgage. I spoke with a loan officer over the phone and he took basic financial info from me and ran our credit reports while we were on the phone. He said that everything looked good and he expected that we would be approved.
Pre-approval means they take a look at your credit reports and other tangible financials to see your debt situation . We were also asked to supply the last two year’s worth of W2s, a pay stub from the last 30 days and Shane’s transcript from college. Durn it, I’m going to have to order the transcript because I can’t find it anywhere.
We’ll see what kind of loan we might be approved for and then take it from there.
I pulled my credit report from the three reporting bureaus to make sure there were no errors. Shane will do that on his own report when he gets home.
A real estate agent is coming over later this evening to speak with us. So yay, things are moving along!