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and the housing thoughts continue

December 3rd, 2008 at 05:14 pm

I hate obsessing about my housing situation. I know it either bores you all or I sound wildly optimistic about my economic situation in the face of all this doom and gloom. But bore or aggravate you I am about to do.

It just helps me think and weigh my options...writing in this blog.

So I went away on vacation over Thanksgiving weekend. While in the airport on my way home- one of the lenders I am working with called with bad news. She said based on our income she could not approve us for our desired loan. She said she cannot count the $995 a month rental income from the duplex we want to buy as our income because it will be our primary residence. So...even though we will live in one unit and have renters for another unit...that will not count towards our income. She said she has to keep our mortgage payment at 45% of our income. I guess I can understand that. BB and I have an extra 10k saved on top of the 20% down payment for renovations and such...I guess we could apply that 10k to the down payment as well. So I asked her "how much do we need to put down for this mortgage to be approved for our 200k request?" She runs numbers and says we need to put down $130,000. ??!! I quickly ended the conversation because we don't have 130k. I wish we did because then our mortgage payment would be less than $400 a month! Anyways- on the plane I was trying to figure out where her number came from- but $400 a month is 20% of our current income. Not the 45% she said was our limit. Whatev.

BB and I are not deterred. We refuse to give up easily. I understand that rules are in place, I understand that on paper we look risky, But I also know that whatever bank decides to lend to us is going to get every single payment on time.

This morning I got a hold of a broker through lending tree that has been harassing me wanting my business. He needs all our paperwork and said he thinks we will need to put 30% down and can lend us the rest. So heres hoping.

We had plans to put in an offer in 2 weeks- but the plan is also to have concrete lending in place so everything goes smoothly after negotiations.

Since we will be putting down the money we saved PLUS our renovation money...we are reconsidering maybe offering on the house I have mentioned in previous posts that was BEAUTIFUL in a less than stellar part of town. The place is nearly perfect in my eyes- I could easily live in it and have no complaints. The house we were planning to make an offer in the better neighborhood needs some big work before we even move in.

So...it seems we are reconsidering our thought process now that we will no longer have "fix up" money. But as a plus; our mortgage payment will be smaller! We might be able to stretch the rental income to cover the mortgage AND insurance! Holy cow that would be great!

So that is where we are at. We are not taking the setback as a sign to not go forward- we are ready for this commitment and now we are looking to get creative in the financing department.

And in closing- the news has announced possible plans to DROP new homeowner interest rates down to 4.5% in the next few months. I think I am somehow blessed that it has taken 3 yrs to save up a downpayment...we have had minor stallings in getting a mortgage...because we might get incredibly lucky and buy at a time that the govt is offering a $7500 tax credit AND a super low interest rate for new homeowners!

I know it will all work out fore me. I'm just impatient!!

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