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Important decisions

October 15th, 2008 at 05:45 pm

So BB and I decided to take one baby step closer to home ownership and see if the price range we think we can afford is the price range the lenders think we can afford.

Interesting morning. I started off checking our credit scores (both our scores are in mid-800's good job us). BB and I were VERY surprised to find out BB has a student loan out in his name with a balance due of 11k. (paid up to date) BB's parents had never mentioned a loan out, actually they said they took an equity credit to pay both kids schools outright. BB has not been in college for about 7 At any rate it's a speedbump. The payment due is $130 a month and since BB earns 10k a year I can see this not getting paid off anytime soon and GREATLY hindering the lenders ability to account for BB's salary.

Anyways- that surprise aside- The lenders didn't really know what to do with me. Since we want to buy out of state we are stuck in the "you cant be approved until you have a job and you cant get a job till you live in the state" issue. Rather than renting in future city and getting a job- I was hoping to just get approved based on my meager rental income and my assets. Bless the lenders heart they were struggling to approve me but by the end of the phone conversation even I would be hard pressed to lend to myself.

So I got off the phone with options. I can get a co-signer (NO WAY!), I can move to the state and get a job (possible but not to practical), I can pull out a mortgage or equity loan from my rental property to fund the house (riskier and more expensive than I would like), or we can buy a duplex, and 70% of the rental agreement income will become a part of my income. This is the most likely scenario. We have been talking about duplexes off and on...weighing the pros and cons and leaving it as a possibility. Actually it sounds ideal- I am just concerned because the duplexes we can afford are in shady parts of town. But now with this mortgage issue...looks like that is the way we need to go.

I am just annoyed because I paid cash for my new vehicle last year. I paid cash for my masters degree. I am paying cash for this wedding coming up next month. Does that count?? No! And if I had not been Dave Ramsey responsible I would have 50% of my future house price to pay in cash!

Anyways, after feeling
really poor and unsuccessful in life I check my email and lo and behold- a lender approved me for 250k! What are they thinking?! I cant afford that!

2 Responses to “Important decisions ”

  1. fern Says:

    That's bizarre. I would be wary of the $250K approval. It could be a scam or carry really onerous rates.

    The surprise student loan sounds strange, too. Who's been making payments on it up til now?

  2. gamecock43 Says:

    BBs dad has been. He had always planned to pay the 1st 3 yrs of college then if BB chose not to play ball then he would be responsible for the final year. He ended up playing ball. We thought school was long over and done with.

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