(Closed) Thought house shopping would be fun…I was wrong

posted 6 years ago in Home
Post # 3
1235 posts
Bumble bee
  • Wedding: July 2012

My Fiance and I are currently in house hunting mode — light version. Were looking but were not ready to tour homes just yet. Were going for the pre approval process in the next couple of weeks and though our budget is pretty low, my Fiance is too picky!! I want a fixer upper and hes like “ewww that place is  a dump!” Im like honey, carpet is cheap and an easy fix!!! YARRR its frustrating

Post # 5
46407 posts
Honey Beekeeper
  • Wedding: November 1999

I think meeting with the financial advisor is a great idea. Have you been pre-approved for a mortgage? That whole process helps to clarify what you really can afford.

Post # 6
103 posts
Blushing bee

@Wonderstruck:  you’re my twin in a million ways! Fiance has never owed money, has over $100k saved, etc and we’re looking for houses and struggling to compromise!

A tip… That I’m not sure applies for the US but it might? We are planning to have our mortgage and then what’s called an offset account, and the money in our offset account reduces our amount owed (so what the interest is calculated on) but we still have full access to the offset account without paying any redraw fees! (No idea if American banks work anything like Australian banks, sorry if that makes no sense to you) 

My Fiance has come to terms with owing more money than we’d prefer if it’s for our dream house, it sounds like your Fiance is on the path to that realisation too 🙂

Post # 7
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

Yeah, Mr. LK and I are of the “no debt” variety, too, but we’ve come around to the reality that it would take most of our working life to be able to save $500k to buy in cash in this area. And by the time we save that $500k, inflation and the continued increase in property values will have increased the price of the same home to $650k. In other words, we either take on a mortgage or we don’t own the kind of home that we want until we are retired. Yes, we will be paying interest, but at 3.8%, it’s a reasonable amount. At least we’re not going to be throwing money away on mortgage insurance, too, because we have the 20% downpayment. Sometimes you just have to bite the bullet and get what you love because it will make you happy for the next 30 years, regardless of what other people think.

Post # 8
6661 posts
Bee Keeper
  • Wedding: May 2010

We both wanted to spend as little as possible, but in NYC that could get you something pretty scary in a bad neighborhood so we set some limits. So early on I think we both accepted the fact that it would have to be a 30 year mortgage counting on two paychecks. I had to talk Darling Husband off the ledge when we found our current place since he wanted to offer full asking and get it over with, but that was our only discrepency when it came to how much to spend.

Post # 10
868 posts
Busy bee
  • Wedding: September 2011

@Wonderstruck:  you should TOTALLY get pre-approved somewhere to make your husband feel better.  Darling Husband and I got approved for SO MUCH MORE than what we would ever consider reasonable for our budget.  LIke $200k more- lol!

My husband is a loan officer in Bloomfield Hills (I see you’re in Detroit).  If you want some non-biased information, or a pre-approval PM me and I’ll get you in contact with him.

Post # 11
2416 posts
Buzzing bee
  • Wedding: September 2012

It’s a pain…especially if you have different ideas of what you both want!

Post # 12
2233 posts
Buzzing bee
  • Wedding: September 2012

I could not even fathom paying off a house in 15 years and still being able to put away 1k each month. I live in a really crazy housing market so I have never even thought of being able to actually pay for a house in cash. To me a home can be an investment just because of how crazy this prices around here. FI’s condo is already worth 50k more than what he bought it for 3 years ago so that covers the few grand he’s paid in interest.

I think you both need to get on the same page as far as what you’re willing to spend. I totally understand the fear with such a big purchase and taking on so much debt. I have had clients who are just like you and your Darling Husband, have no debt and lots of savings. It’s hard to get over the idea of taking on a mortgage when you’re in that position but if it’s somewhere you plan to stay for the long term and you can afford it then the amount you will pay extra to live in a house you love is worth it.

Post # 13
3943 posts
Honey bee

@Wonderstruck:  Do you guys own your home now, or is this your first?

We actually had a lot of fun looking for houses. It was the time between having our offer accepted and waiting to close which was an absolute nightmare. So stressful.

Have you guys been pre-approved yet? It might make your Fiance feel a little more at ease.

Post # 14
385 posts
Helper bee
  • Wedding: July 2012

Interest rates are so low right now!  You guys sound like you’re in such a good place financially, I really don’t see a downside in getting a mortgage on the higher-priced house.

Post # 16
18643 posts
Honey Beekeeper
  • Wedding: June 2009

As long as you are comfortable paying the payments and have the money from the other house to roll into this one, I don’t see the harm.  It’s hard dealing with family sometimes I know.  Even my husband who didn’t want to get a loan ended up agreeing to get one this time since rates are so low and it’s a 15 year mortgage.

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