I caught the house bug. It was inevitable. After seeing everyone talk about their homes, remodeling, and building equity, I finally caught it. Let’s rewind a little bit…
While I was knocked out on pain meds this weekend due to the extraction of four bicuspids to make room for my crowded teeth, my husband popped the question. He asked “if we should be thinking about buying a home. Houses are really cheap right now, especially in Texas, and we should be able to save up the 20% down payment in the next eighteen months.” I know it most places, buying a house is almost an impossibility (hmm Canada, California, Seattle, etc.), but in Dallas, Texas homes are “affordable.”
Right now we are paying $900 a month for a 700 sq. foot 1 bedroom apartment + $80 in water + $80 in electricity + $100 in cable/internet. I did some research and figured out that if we got a really good interest rate (possible, my hubby has a 750 credit score right now, car debt will be gone in August, no student loans, 20% down payment), our mortgage will be equivalent to our rent, that’s including insurance and taxes probably. And that’s our mortgage at the 15 year loan. No 30 years for us. Only 15 years.
The house we can buy is a starter home. 3 bedroom/2bath = 1500 sq. feet = fixer upper. Houses in our area for these type of homes range between $100K to $150K depending on the location, neighborhood, condition, and age of the home. The max we could afford is a $150K house. In order to buy a $150K house, we would need $30K ($150k*20%) down payment. $150K is really our max budget and that’s accounting for closing costs, and everything else you have to pay for in order to buy a home. I know the house will be a fixer upper, I mentioned this to my husband and he said good thing your dad’s an electrician and my parents love remodeling.
The plunge into home ownership is definitely a big one. But financially it will be better in the long term. Once our lease is up, rent will likely jump to almost a $1000. We have time right now, and are only considering home ownership. Once we finish funding our emergency fund savings ($20,000), we will start saving for our down payment fund ($30,000), a home improvement fund ($10,000), & furnishing fund ($10,000).
So if you see any tweets related to homes, it’s just me researching. If you have any advice please let me know This home ownership thing is so scary and exciting!