Re: What a mess! Do you think we'd qualify?
10-04-2012 09:49 PM
@ Elcid: While I appreciate your advice and opinion, I feel that you're incorrect. 4 years ago, I helped a friend through the process of closing with a VA mortgage (he was deployed and I had to use POA to make offers/sign his papers). He literally had maybe 400 dollars cash on hand besides the 500 for the earnest money. He ended up paying 400 for a home inspection, about 70 dollars for a termite inspection and that was pretty much it. Sellers paid the closing as well as paying for a home warranty.
Unless the VA loan fees/process has drastically changed, I just can't see how we're not ready. The reason our savings is depleted is because we were preparing ourselves for the home-buying process. We paid down debt, PFDd a few items and also paid to break my apartment lease so we could live together near his duty station.
I could see us needing a lot of money if we were looking for a house that was 150k or more. But this house is 89k. Seller to pay 1500 in closing, which from the calculations I've been given by the realtor should just about cover it for this loan. I was paying 529 for my apartment by myself with a 300 utility bill. This house is energy efficient and only 10 years old with a 1 year average electric bill of a whopping 109 bucks and a proposed PITI of 583 a month. I have virtually no other debt. I understand that the costs of maintaining a house are more than renting, but in all the number crunching I've done, I just can't see how we're not financially in a decent place. We may not have much in savings now, but within 2 months of getting the house we will have at least 3-4k in savings, after deducting the costs of moving and everything else.
I know we're ready, I just have to make the lender see it!
Goal: 700 club