(Closed) Did you stick to youe house budget when you purchased? (Poll)

posted 5 years ago in Home
  • poll: Did you stick to your budget when you purchased your home?
    Yes (Not a Penny More!) : (75 votes)
    68 %
    Nope (We upped the budget to get what we wanted) : (36 votes)
    32 %
  • Post # 3
    Member
    9199 posts
    Buzzing Beekeeper
    • Wedding: August 2013 - Rocky Mountains USA

    Yes, we were well under the top of our budget range.  (And about a third of what the bank told us we were pre-approved for!)  I also did NOT want to be house-poor.

    Post # 4
    Member
    2622 posts
    Sugar bee
    • Wedding: November 1999

    We did stay in our range. We ended up in about the middle of it actually once negotiation were done. It was listed at the top of our range.

    I agree you dont want to do house poor, but figure out your monthly payment.

    If you are already stretching to make it, another 20-50 could make a huge difference, but if its a comfortble payment, then paying a couple thousand for a house will not really be noticeable in your payment

    For example,

    Assuming 20% down, no PMI and 3.25% interest rate and 1.25% property tax a house priced at 229K is a $1,025 payment

    Same assumptions, but a $219K house is a $990

    That is only a $35 dollar difference. Is that worth losing the house over, assuming you have the down payment for both houses?

    Post # 5
    Member
    5423 posts
    Bee Keeper
    • Wedding: November 2012

    Our original budget was 180 when we were looking in a particular area (suburbs w/ high taxes).  We changed our search to the city where we could afford more and upped it to 200k.  After seeing 3 houses we decided to push it to 225 only because it was a good searchable number but never did we consider any that high.  In the end we paid 208. 

    It was a big battle becuase we had lost out on a house and I didnt wanna pay more for this one since it was smaller and not as perfect plus the sellers were underwater.  Because they were under we got zero help with closing.  We had to bring a big chunk of change to the settlement table.

    Find out what the sellers paid on the house.  Usually that will tell you if they are willing to go lower.

    Post # 6
    Member
    2685 posts
    Sugar bee

    We were within budget, but closer to the top of our range.  Our home was 175, we had a budget of up to 180, but we wanted to ideally stay in the 160’s.  All of the homes we researched in the 160’s were fixer-uppers, whereas our home was in very good condition and had the space and floorplan we wanted.  We were also worried about being house poor so we decided we didn’t want the risk of a fixer even though it was cheaper.  I’m really happy with the decision we made.

    Post # 9
    Member
    1762 posts
    Buzzing bee
    • Wedding: August 2014

    Yes we stayed in our price range and its well worth it!

    Post # 10
    Member
    2490 posts
    Buzzing bee
    • Wedding: July 2018

    We ended up spending 40k less than our ideal budget.

    Post # 11
    Member
    5423 posts
    Bee Keeper
    • Wedding: November 2012

    @Meant2Bee:  If they are already taking an 11k loss I am not sure if theyd be willing to go lower.  They probably cant go much lower unless they put the full 20% down.  And even then, they want to make back as much money as possible.

    Post # 12
    Member
    2622 posts
    Sugar bee
    • Wedding: November 1999

    @Meant2Bee:  Dont forget you can ask for other things besides a $ decrease that can save you money. 

    Maybe they have patio furniture or appliances or other items that you want included in the selling price. This is stuff you dont have to pay $ for when you move in.

    But we would have to use cash for our closing cost which we currently intended on using to pay for part of the wedding. 

    Does this mean you payign cash no matter what? If you dont have a downpayment, this amt should be about the same no matter the price.  so is this the what your worried about when buying the house?

    Post # 13
    Member
    10367 posts
    Sugar Beekeeper
    • Wedding: September 2010

    We had kind of a vague idea of what we wanted to pay, and that was basically out of line for what things in our area cost after you factor in the bidding wars (we were naive enough to think that we would be able to pay asking price, hahahahaha not so much….). However, we didn’t stretch past what we could easily afford.

    We thought we could get away with paying $420,000 for a 2-bedroom townhouse. We ended up paying just shy of $500,000. Worth every penny, and units that are smaller than ours have already sold for more than 10% more within days of hitting the market, so I really believe that it was an awesome price and great investment.

    Post # 14
    Member
    7651 posts
    Bumble Beekeeper
    • Wedding: July 2012

    We were about 20-30K under what we felt comfortable with.

    Post # 15
    Member
    3823 posts
    Honey bee
    • Wedding: August 2013

    Yes. My mortgage lender kept telling me that I qualified for $260k but he was so good to me. He knew I was in my early 20s and starting off in my adult life and he knew the bubble was coming, so he kept me relegated to shopping in the $180s. I’m so glad he did. 

    He told me that the mortgage payment is what matters most and I should have more than enough room in my budget for it just in case something happens. I bought my house in 2007. Now my Fiance and I are talking and making future plans and we can comfortably save for a much more expensive house and keep my old house too without feeling obligated to rent it out to have someone else cover the note. 

    Definitely stay within budget to afford yourself options in the future.

    Post # 16
    Member
    7311 posts
    Busy Beekeeper
    • Wedding: October 2011 - Bed & Breakfast

    Yes and No. LOL When we were hunting pre-wedding we were looking in the $400k range to allow ourselves the 20% downpayment/closing costs/emergency fund and make sure we had plenty of cash left over to pay for the wedding. Since we were still hunting after the wedding, and I hadn’t even touched one wedding account, we had extra money to have a larger downpayment, which enabled us to increase the budget to $500k and still have the 20% down payment and closing costs and 6 month emergency fund. So we increased not because we were being willy nilly, but because we had the downpayment funds available and it was still a mortgage amount that we could support on one salary, if necessary.

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