hello, home: buying our first house
A lot has changed for Drew and me in the past few months. It all started when Drew went 6 weeks without a job back in August and part of September. At that time, we were pregnant but didn't quite know it yet. We were scrambling for extra work, praying for God to provide, and coming to terms with the fact that we would probably drain our savings account and have to live at our apartment a year longer than we planned. But, God had different plans. During those 6 weeks, Drew and I worked nights and weekends doing any and everything from babysitting and selling artwork, to painting walls and building things. We sold stuff. We worked extra hard. And, most importantly, God opened doors. So much so, we didn't have to dip into our savings and actually had more in our savings than we started out with at the beginning of those 6 weeks. We were amazed at God's grace.
Then, about a week after Drew started his new job, we found out we were pregnant. Suddenly, we realized that our plan to move out of our apartment at the end of our lease in May just wasn't going to work since I am due May 2nd. Moving during the week I'm due? Yeah... not so much. Even more than that, we realized that we were busting at the seams in our apartment and there wasn't going to be any room for little babycakes. So, we began checking out the housing market online.
After about 3 weeks of searching hundreds of houses online, talking through our budget, and our list of must-haves, Drew and I decided to take the next step and hire a realtor. We already knew the area of town we wanted to move to, so it was just a matter of finding a house within our budget. Before looking at any houses, we got approved through our bank.
After looking at just a dozen houses, we found "the one" that we just loved. We walked down the driveway and immediately looked at each other and said, "This is our home." We just knew. Amazingly, the house was $30K under our pre-approval amount and seemed like a great fit with our must-haves and location. We started to get really excited as our realtor began talking with the seller and they accepted our offer. We paid our earnest deposit, ran an inspection, and started dreaming about our new house.
Then chaos began ensuing. First of all, we were working with a relocation company which meant a lot more paperwork that all had to be signed in person instead of electronically. This meant a lot of running around for our realtor and us. Then, our bank told us that they could no longer offer us a loan because of complications with my self-employment paperwork. We were so afraid that we would not only lose the house, but the money we had already put down. So, after some anxious moments, we had to find a different lender and begin the process all over again. Submitting all the paperwork, signing amendments in person, waiting on edge to hear that our loan would in fact go through. I had to go spend an afternoon at the IRS getting some tax records, we spent a lot of time talking with the lender, and finally after we were just 1 week out from our closing date, we just barely made the cut. It was extremely difficult to keep moving forward with the process all while not knowing for sure if our loan would go through. But, in the end, it worked out. And we are extremely thankful to be moving this weekend.
1 // First of all, if you are self-employed, make sure when you set your budget that you only include the income you made from your last 2 tax returns with your business. I made the mistake of thinking they would be able to take into account money I've made this year, but according to our lender, they are only able to look at your tax returns as legitimate income.
2 // I guess I should have said this first, but set a budget! Be sure to estimate an accurate monthly amount based on your down payment and loan APR. Also, be sure to add in extra for homeowner's insurance, gas, water, electricity, mortgage insurance, and taxes. It's important especially if you're used to living in an apartment to set an accurate budget. With apartments, you typically are paying a base amount plus a small amount of fees for water and sewer, etc. With a house, you could be paying anywhere from $300-500 a month on top of your base mortgage payment every month. Don't make the mistake of thinking that if you're paying $1200 in rent and that's your budget for house payments that you can afford a $1200 mortgage payment because it's going to end up being a lot more than that.
3 // When you are being pre-approved, be sure to go talk with your lender in person. Our bank made us go through an online application which is what gave us the misguided pre-approval letter. It's very important for your lender to be aware of all of your financial situation and talk through any concerns you might have. This is especially true if one of you is self-employed.
4 // Take time for yourself. The process of buying a house can be extremely stressful and/or emotional. Drew and I had several moments of being stressed out or of not feeling very excited because we didn't know if we would end up losing the house or not. During those times, we realized that we needed to take some time to relax, spend time together, and encourage each other that, no matter what, we were going to be okay.
5 // Be adaptable. Things are going to come up unexpectedly. It's almost a guarantee. Be sure that you've not only allowed some flexibility in your budget, but also with your time, and in preparing your emotions and expectations.
Because we have not only learned a lot throughout this process, but there is always so much to be thankful for, I wanted to include a list of things we are so, so grateful for. Besides, we did end up with a house. And even if we didn't, I believe it's important to keep a thankful spirit after experiencing important life lessons.
1 // Our house has very minor fixes. Like we need to add 2 railings and fix a few outlets. Nothing major is wrong with the house, which is a huge blessing!
2 // Our monthly house payments, with insurance and everything, is almost exactly the same as our current apartment rent. Yeah, baby! And we'll actually be investing in something :)
3 // Our house, although not our "forever home," has more than just our must-have list. For example, we really wanted a fenced in backyard, but it wasn't a must-have item. And our new house has a fenced in yard! Drew is really excited because he's always wanted a dog :)
4 // We are able to move in before the holidays! It works out so nicely that we'll be all settled in our new place before Thanksgiving and Christmas begin. As well, I'll have plenty of time to decorate the nursery once we know the gender of our babycakes :)
Thanks so much for letting us share our home buying story and the things we've walked away with. We are extremely grateful for your excitement with us during this process and I look forward to showing you more photos and our list of home improvement projects that seems to be ever-growing! :) We are so excited to be able to transform this little house into our home.
I'd love to hear about your home buying experience and the things you learned! Leave a comment below :)
Then, about a week after Drew started his new job, we found out we were pregnant. Suddenly, we realized that our plan to move out of our apartment at the end of our lease in May just wasn't going to work since I am due May 2nd. Moving during the week I'm due? Yeah... not so much. Even more than that, we realized that we were busting at the seams in our apartment and there wasn't going to be any room for little babycakes. So, we began checking out the housing market online.
After about 3 weeks of searching hundreds of houses online, talking through our budget, and our list of must-haves, Drew and I decided to take the next step and hire a realtor. We already knew the area of town we wanted to move to, so it was just a matter of finding a house within our budget. Before looking at any houses, we got approved through our bank.
After looking at just a dozen houses, we found "the one" that we just loved. We walked down the driveway and immediately looked at each other and said, "This is our home." We just knew. Amazingly, the house was $30K under our pre-approval amount and seemed like a great fit with our must-haves and location. We started to get really excited as our realtor began talking with the seller and they accepted our offer. We paid our earnest deposit, ran an inspection, and started dreaming about our new house.
Then chaos began ensuing. First of all, we were working with a relocation company which meant a lot more paperwork that all had to be signed in person instead of electronically. This meant a lot of running around for our realtor and us. Then, our bank told us that they could no longer offer us a loan because of complications with my self-employment paperwork. We were so afraid that we would not only lose the house, but the money we had already put down. So, after some anxious moments, we had to find a different lender and begin the process all over again. Submitting all the paperwork, signing amendments in person, waiting on edge to hear that our loan would in fact go through. I had to go spend an afternoon at the IRS getting some tax records, we spent a lot of time talking with the lender, and finally after we were just 1 week out from our closing date, we just barely made the cut. It was extremely difficult to keep moving forward with the process all while not knowing for sure if our loan would go through. But, in the end, it worked out. And we are extremely thankful to be moving this weekend.
A few things we learned
1 // First of all, if you are self-employed, make sure when you set your budget that you only include the income you made from your last 2 tax returns with your business. I made the mistake of thinking they would be able to take into account money I've made this year, but according to our lender, they are only able to look at your tax returns as legitimate income.
2 // I guess I should have said this first, but set a budget! Be sure to estimate an accurate monthly amount based on your down payment and loan APR. Also, be sure to add in extra for homeowner's insurance, gas, water, electricity, mortgage insurance, and taxes. It's important especially if you're used to living in an apartment to set an accurate budget. With apartments, you typically are paying a base amount plus a small amount of fees for water and sewer, etc. With a house, you could be paying anywhere from $300-500 a month on top of your base mortgage payment every month. Don't make the mistake of thinking that if you're paying $1200 in rent and that's your budget for house payments that you can afford a $1200 mortgage payment because it's going to end up being a lot more than that.
3 // When you are being pre-approved, be sure to go talk with your lender in person. Our bank made us go through an online application which is what gave us the misguided pre-approval letter. It's very important for your lender to be aware of all of your financial situation and talk through any concerns you might have. This is especially true if one of you is self-employed.
4 // Take time for yourself. The process of buying a house can be extremely stressful and/or emotional. Drew and I had several moments of being stressed out or of not feeling very excited because we didn't know if we would end up losing the house or not. During those times, we realized that we needed to take some time to relax, spend time together, and encourage each other that, no matter what, we were going to be okay.
5 // Be adaptable. Things are going to come up unexpectedly. It's almost a guarantee. Be sure that you've not only allowed some flexibility in your budget, but also with your time, and in preparing your emotions and expectations.
A few things we are thankful for
Because we have not only learned a lot throughout this process, but there is always so much to be thankful for, I wanted to include a list of things we are so, so grateful for. Besides, we did end up with a house. And even if we didn't, I believe it's important to keep a thankful spirit after experiencing important life lessons.
1 // Our house has very minor fixes. Like we need to add 2 railings and fix a few outlets. Nothing major is wrong with the house, which is a huge blessing!
2 // Our monthly house payments, with insurance and everything, is almost exactly the same as our current apartment rent. Yeah, baby! And we'll actually be investing in something :)
3 // Our house, although not our "forever home," has more than just our must-have list. For example, we really wanted a fenced in backyard, but it wasn't a must-have item. And our new house has a fenced in yard! Drew is really excited because he's always wanted a dog :)
4 // We are able to move in before the holidays! It works out so nicely that we'll be all settled in our new place before Thanksgiving and Christmas begin. As well, I'll have plenty of time to decorate the nursery once we know the gender of our babycakes :)
Thanks so much for letting us share our home buying story and the things we've walked away with. We are extremely grateful for your excitement with us during this process and I look forward to showing you more photos and our list of home improvement projects that seems to be ever-growing! :) We are so excited to be able to transform this little house into our home.
I'd love to hear about your home buying experience and the things you learned! Leave a comment below :)