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Um ... Wow!

February 17th, 2016 at 12:50 am

So as I've mentioned, Mr Ft and I went through the process of submitting a loan application for pre-approval on the house we're considering (strongly considering).

I got a call from the mortgage originator last night shortly before heading over to the photographer appointment.

He told me that we definitely qualified for the loan amount, and that with $20k down, our payment would be roughly $838. He was basing that off a rough interest rate estimate.

So ... I called C, a realtor and he called the homeowner and set up an appointment for us to look at the house on Thursday.

Today I realized that the house is a for sale by owner, and that maybe I shouldn't have jumped the gun on calling C. Especially since C told me that the homeowner made it clear that the price was non-negotiable.

That sounded really strange to me. I talked to J again (loan originator) and he told me that the market had been pretty strong here for awhile, and houses have been selling for asking price +. So that might be why the homeowner said that.

He also gave me an updated estimate - with putting down only 10% (instead of 15%) using a NIFA loan, we could get 3.25% interest (paying PMA for 11 years) and our estimated payment would be $844.

(I asked him about doing just 10% so that we could have more liquid cash breathing room for moving costs, closing costs, setting up house, etc. It was a difference of about $30/month in the payment.)

I also asked him how high we could go ... he told me ... oh a couple hundred thousand. I just about choked. No way, no how!

The asking price on the house we're looking at is $128,500 which is more than enough for my blood.

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The long and short of it (ha ha) is that we could potentially become homeowners before we get married! (J was saying it could take anywhere from 30 - 45 days for the whole process.)

Faint.

10 Responses to “Um ... Wow!”

  1. jokeabee Says:
    1455670688

    Wowza! How exciting! I know I just about threw up when our offer was accepted (you know-owing so much money!) We've had our house just a little over a year and I still want to hug it every time I come home. Good luck with the whole process!

  2. FrugalTexan75 Says:
    1455670809

    Thanks! I can hardly even imagine how it'll feel to have an offer accepted ...

  3. Kiki Says:
    1455689488

    I was there just a year ago. It is scary but there is so much work to get to the closing table!

    How much is the PMA for 11 years? Any way to put down enough to not have to pay that?

    And congratulations!

  4. VS_ozgirl Says:
    1455692429

    That is so exciting!!! Wishing you all the best - the price sounds very manageable. Goodbye landlord!! Ps your 20 frozen dinners is a great idea, especially as you have such a hectic few months ahead Smile

  5. creditcardfree Says:
    1455715709

    So will the seller pay your realtor a commission? Some FSBO won't pay a commission to a realtor. I'm surprised that you are surprised at how quick the home buying process can take. Obviously delays happen, buy an agreement and closing can happen in 30 days.

    Good luck!

  6. CB in the City Says:
    1455718382

    How exciting! You are having an amazing year!

  7. MonkeyMama Says:
    1455719490

    Exciting!

  8. Ima saver Says:
    1455719789

    I hope you really like the house. The realtor's fee has been a big stumbling block for us. By the time we pay the fee, we usually don't make any money on the house. Maybe the owner will pay the commission. (usually 6%)

  9. pjmama Says:
    1455729219

    What an exciting development! Wishing you the best Smile

  10. FrugalTexan75 Says:
    1455758280

    Kiki - It's $76. We have to get an FHA loan due to certain circumstances - the 11 years PMA is the best deal.

    VS - Yep, they'll be hectic alright! Smile
    CCF - I don't know yet how that's going to work. I really thought the home buying process took several months at least ...

    Thanks CB - it does feel like it!

    Thanks MM. Smile
    Thanks Ima - we'll have to get that figured out.

    Thanks pjmama. Smile

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