Well I've come to a decision, and frankly, it scares the shit out of me.
I've decided I'm going to buy a house.
My rent will be over $500 a month before the end of the year, and if I can find someplace where the mortgage is less than $700 a month, I should be able to make it. The first few years are gonna be tough, but presumably, my income will increase year after year, and with a set mortgage, that payment will not, as opposed to rent, which will most likely increase year after year as well.
I don't imagine the prices are EVER going to be any better than they are now. And I know credit is tight, but I've got the best credit rating I can possibly have (or so they told me when I got my last car loan 6 years ago). And I'm told there like a $6000 credit for first time homebuyers or some such stuff this year, which should help when tax time comes.
I was looking on the Internet around town here, and there are several at or under $100,000 that I could possibly handle. I mean they're small, but I don't need a lot, and they don't have much land, which is good, cause I don't want a big yard, I'm allergic to freshly mown grass, so i don't want that burden.
Things are gonna be tight the first couple years, especially since I'll need a new car somewhat soon, and that'll be an extra burden. And I'm NOT terribly responsible when it comes to upkeep, anyone that's actually seen my apartment can attest to that. And finacially, I'm rather a moron, I can't balance my checkbook to save my life. And those are definate concerns of mine.
But in the end, I just don't see how I can NOT do it now. I could wait and try to save up some more, but I think the prices are gonna graduall increase as well, and I think if I put it off for a 'better time' well, that 'better time' will never come.
My first step is go to the Credit Union and talk to them and see how much I can borrow and that'll give me an idea of the price range I can look in. And then, I can start looking. If I want out of my lease, I'm supposed to let the landlord know by August 1st, so I can be out by September 1st when the lease renews. But two months...damn, that just seems an insanely short amount of time. I don't know.
I can't actually get to the Credit Union probably for two weeks, so that gives me that amount of time to talk myself out of it. Which I may do. Because I am truly frightened and scared and worried about taking such a drastic step. But, by the same token, I truly believe that if I don't do it NOW, I never will.
Cross your fingers for me.
POLT Listening to "Gypsy Woman" by Crystal Waters Oil: 68.41 (+1.98); Gas: 2.44 (+.02)
Some people are pragmatists, taking things as they come and making the best of the choices available. Some people are idealists, standing for principle and refusing to compromise. And some people just act on any whim that enters their heads. I pragmatically turn my whims into principles! - Calvin & Hobbes
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10 comments:
Good for you. The tax benefits of home ownership are substantial and will probably cut your payment increase a lot.
Good luck in finding the right place.
onanite
Scary but exciting. Mojo that you can get a good mortgage rate. I know here people are talking about 3.5 - 4% for a fixed term. That's wild. I remember in the 80's when my parents renewed at something like 21% Post pics of houses and we'll help you decide. :-)
Fingers and toes (not legs though) are firmly crossed!
Do it! Don't look back just do it. You'll get back every penny you ever put into it as opposed to never getting a penny back from rent you've paid. Do it now, don't be scared! (Get a real estate agent, they'll walk you through the whole thing and it'll cost you nothing for their services.)
What tornwordo said and more! Owning your own home is awesome! I felt the same way when I bought and at the end of the process, the only thought was "why did I wait so long?"
Good luck!
My fingers are crossed. I can see you now in your little purple house. Go for it!
Get yourself pre-approved for a loan. Sellers will fall over backwards! And buy LESS house than what you are approved for.
Just my 2 cents.
Good luck! Buying a house must be scary, but think of how sweet it'll be once it's yours!
Move on up to RI. You can score a house for about $50K in Providence.
That said, go for it though I think we haven't seen the bottom yet.
I think you're doing the right thing at the right time. It won't get much better than this.
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