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slight reprieve

I found out from the landlord that the builder has decided to return to his previous job, or some such thing, so the landlord has to find a new builder. From what he'd said before, construction was expected to take about six weeks, so that now puts the earliest finish date, and date for me to move, at the beginning of August. This is good for me, it means I'm assured some time to find a new place without having to worry about whether I'll need to switch to a different apartment temporarily. However, I can't let that make me complacent; my natural tendency is to procrastinate a lot, and that won't work.

At the moment I'm on step 1, which is actually figuring out exactly what my financial situation is. I bought Quicken and am finishing entering my checking account information for the past two years - greatly aided by the fact that I could download the past 16 months' worth of account information from my bank - so then I'll be sure what my average monthly expenses are in various categories. I'll need that information when I go looking for pre-approval on a mortgage. I've been joking that when I'm done loading my data, Quicken is going to tell me that I couldn't afford to buy Quicken and I should return it. Hopefully it won't be that bad.

I also need to get a buyer agent, and have to remember to ask Orkboi for contact information on the one they used; I should ask Brandon as well who he used, but he's off in Europe for the month and I doubt he'll be able to give me the info until he gets back. I'll try emailing him anyhow. Hmm, there's someone at work I can ask as well. I've also got the guy from the first-time buyer's seminar trying to bring me in, but just the fact that he's eager to do so is putting me off a bit.

I'm still very concerned about what the numbers are going to say, what's going to be affordable and where it'll be located. But I do at least feel that I've already accepted the reality that I'll be buying a place, I'm already mostly over sadness at the idea of leaving and I'm getting enthusiastic about the idea of having a new home that I'll own.



( 2 have written — Write )
May. 11th, 2005 01:52 pm (UTC)
the formulas...
well... I'm going to my last class tonight.

Heres what the loaner officers look at. (or so I'm told)

GROSS monthly income + Other monthly income = TOTAL GROSS INCOME

SAVINGS = Available for closing and down payment

Monthly Debt (variable "A") = Car Payment + Credit Card + other monthly debts (not phone, cable, elec, heat)

Housing Debt Ratio :
Gross Month Income x Housing Debt Ratio (which is between 28% - 33%) = Estimate month housing expense (variable "B")

Total Debt Ratio :
Gross Monthly income x Total Debt Ratio (between 36% - 41%) = Est Total Month Exps (variable "C")

C - A = D (avaiable housing income)

compare B and D the smallest # is the amount you can spend on principal, int, taxes ,and insurance.

the Loan Officer said EVERYONE qualifies for some amount of a mortgage, (well unless your credit is complete shit) its the amount of the mortgage that is the question.

hope this gives you some idea... I freak too when I think about what I have to spend on a mortgage... then they handed out this estimate sheet of what your mortgage would be at different INT rates... and that sheet had some pretty expensive house prices(for this region) for alot less than I was paying for rent.
May. 11th, 2005 08:17 pm (UTC)
Re: the formulas...
Yeah, I got this information at the seminar. That's why I'm dumping my information into Quicken, so I can figure out what those variables are.

I find it weird that they don't count phone, cable, electricity, heat, and so forth. Okay, cable may not be a necessity, but electricity and heat are, it's not like the money I spend on those now are really part of my "available housing income". So even if they're not going to take that into account, I still need to know for sure what all my average monthly expenses are.

The mortgage estimate sheet that they included with the booklet was not nearly so promising for me... even for the low range housing prices, all of the estimated monthly payments were at least a few hundred more than what I pay for rent now, and most quickly moved into the unaffordable range. But I'm trying not to worry about that too much because I know the estimate sheet doesn't really apply, not until all the numbers have been worked out with a loan officer...
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