House Hunting, Mortgages, and Blue Bedrooms

Hello my dear people! I hope you are doing well! The last time I posted I talked about viewing some listings for houses in my area. I shared photos from the owners and the listings themselves. I was nervous and excited and ready for Friday to arrive! Well it’s Saturday night and I am ready to share with you what happened, the realities of some of the spaces, and some pretty unprofessional YouTube videos I made of each place. (Maybe someday I will get better at videoing….)

You may remember the first property I was interested in was once a Shriner’s Club. It was large, it had a big kitchen, 3 acres of land and I saw possibilities in the photographs I was shown.

Then I was faced with the truth:

I discovered quite ably through my eyes that the pictures were in fact quite old. The place had a smell to it, and there was quite a bit of water damage. The chains hanging from the ceiling would need to be removed and the ceiling repaired. Also, there were doors in bedrooms, which I’ve never been on board for. While I realize it was a commercial type building, 5 exits is a bit much and the laundry room would have been in the master bedroom. Considering they were asking 3X’s my yearly salary for the place, I decided with my husband in agreement it would be a no.

We ran into some trouble on the next property because the homeowners left the doorknob key but not the deadbolt. We couldn’t get in and I took it as a sign.

The seconds property we were able to get inside of was the split level, tri-level from my previous post. It was a bit dated and I hated the wallpaper, but wallpaper comes off:

I just loved it. It seems just the right size.

CDubs even says if we painted his room blue, he’d be all for it. (Once he saw that blue room at the first house he decided he wouldn’t like a place unless it had a blue room and trees for a treehouse)

So now, high off the excitement of a maybe property, we went to our bank. We have two options. One is looking at getting a USDA loan or a mortgage from our bank. After many questions and pulling both of our credit histories we are denied a first time buyer’s mortgage. We are offered instead 90% of the cost of the house plus 3% closing costs. So I would need $13,000, give it take a couple hundred, to close on that house with that mortgage.

I’ll be frank. It’s very unlikely that until CDubs is about… well in 8th grade that we will have the salary together, and the ability to have a downpayment.

Now. Just this year I’ve had the ability to start putting money into savings… and then I had a unexpected expense. It happens. That and trying to pay off CDubs’s 2 surgeries (ear tubes) and Ryan’s loans… well I am trying. I know that eventually, I will indeed make enough to squirrel away more. I am still in the black at the end of the month. This is positive. It’s just not enough.

I just dislike that I’ve paid $37,116 (total) to live in my current apartment for the last 7 years (going on 8). I feel like, considering our rental history we could afford house payments.

The house we are happy with, including escrow and insurance and all that would be our rent now give or take $50. Which as I’ve mentioned we can afford even if I need to cut things like Ipsy or going out to eat (which my ample frame can afford. It’s a nice frame though 😉).

The bank said we could not take out a loan in order to do the down payment for their 90/3 mortgage. We could borrow on our 401K (nope) or receive a gift. If y’all know someone who would be willing to gift me $13,000 let me know cause I sure as shootin don’t know anyone in my life who has $13,000 to gift us!

Gift!

Obviously for us paying back a 401K and a mortgage and our bills and medical would be too much.

We are hoping on Monday that we can contact a loan company our bank suggested to apply for a USDA loan for the house. This would get us a moderately priced house at 100% downpayment from the Government and 6% closing costs as well. Much better. I also want to do a 30 year fixed rate mortgage if at all possible.

While this is being figured out though, that house is newly on the market, I understand we could lose it. I understand we also need to use end of year bonuses, a tax return, and money from the play (that Ryan will be paid upon completion of the play) to pay house inspection and whatever else pops up. So it’s possible that cute little house might be something that was nice, but we can’t have. Doesn’t mean we won’t find something equal or better. It just means we are getting started here. We’re on the road.

So I’m going to pray about getting the right house for us, qualifying for that USDA loan, and hoping that we know the right house when we see it, and trust it will work out if we do. I will also do my best if we are still here this time next year.

That’s all a person can do!

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6 Comments

  1. kateluthner79

    I’m selling my house at the moment so I love your insights! the finance side is tricky for sure, aim for at least 15% down if not 20% to get a better rate and avoid PMI (wasted money!). It is really hard to save up for sure but your ‘gift’ could also be a loan from a friend or parent… Good luck 🙂

    Liked by 1 person

  2. Denton County

    I love how forthcoming you are with all of this but I have to ask (because I’m a Realtor) why are you doing all of this on your own? Why aren’t you using a Realtor? A Realtor would handle the showings for you, give you mortgage information and referrals to lenders that would be helpful. Have you had a bad experience? I’m afraid to ask but I have to know. In Texas a buyers’ agent is paid by the seller but works strictly (by law) in your best interests. I don’t know an agent around who would be anything but a real help in your situation.

    Thanks for your post and I do wish you great success.

    Liked by 1 person

    1. afternoonofsundries

      We did indeed have a realtor but we did not officially sign any paperwork for him to be our realtor (which I hear is important?). He did show us homes but as I said we have past money issues to deal with that prevent us from moving forward in a way that we want to. We will have to regroup and access I’m afraid 🙂 thanks for your information, I appreciate it!

      Liked by 1 person

      1. Denton County

        You’re very welcome but I want you to know that 99% if humanity has had money issues or they lie about them. A good agent will help you get to where you need to be and stay in touch with you whether it takes a couple of months or a couple of years. At times they don’t consider you to be serious if you won’t sign a Buyer Representation. It’s complicated and I’m sure varies from state to state. If I can help just let me know. And best of luck!

        Liked by 1 person

      2. afternoonofsundries

        Thank you 🙂 they never had us sign anything so maybe they thought we weren’t serious… it’s hard to say. I think it’s because of some specific things we wanted and that our credit had to be improved if we wanted to pay certain things. I will certainly keep you in mind if I need some clarity in the future!

        Liked by 1 person

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