Help us choose a home please

[Anonymous]

My s/o and I are debating between two homes we like. The first is a single family home which was built in 94 but needs some work done. The house needs to be pressured washed and repainted, we would like new kitchen cabinets and updated appliances, also we would like to remove the carpet and get laminate floors. The price is within our price range BUT we have to kick out more in upgrading.

The second place is a townhome. I'm not really sold on being in a townhome but my fiance really likes it. It is updated and 25k less than the house. Both places are negotiable but we plan on staying in a home longer than a townhome of course. It still has the apt feel for some reason. 

We were approved for 150k. If we buy the house for 145k can we use the other 5k to buy appliances or no? And the last question is, what would you do in our shoes? Go with the updated townhome and stay there for a few years or buy the house and upgrade it? We both work 2 jobs.. one being full time and the other part time. We bring in about 70k not including our part time jobs. We both make about $500/month from that. Thanks!

[StartingOver10]

They are both beautiful homes.

One of the ways to compare properties is to have your lender provide you a worksheet showing what the closing costs and montly payment are for each home using their current taxes, insurance and maintenance fees.  

Another way to compare is to see where these homes fit within their neighborhood market values (Market Analysis). Are they near the top of today's values, in the middle or near the bottom?  What is the neighborhood doing in terms of trending up or down or stabilizing. 

Rates are near their 20 year lows now so if you plan to be in the home for a long time, consider which one would meet your needs for the long term. Also consider which payment is more comfortable for you.  

As to using the $5k for appliances, you would have to negotiate with the seller to either leave the appliances or to give you an appliance allowance in the contract.  Ask your LO if an appliance allowance is acceptable for the loan type for which you are approved.  If you can't negotiate it into the contract (appliance allowance) then negotiate some seller paid closing costs so you can use the funds you intended for closing for appliances instead.  This is one negotiating statratgy - there are more. 

As to choosing for you - no way would I step into that trap!    It's going to be your home so you get to choose, you and your SO.  

[bear812c]

I like the first one on Single Leaf.