Wednesday, April 17, 2013

Right on track

Image: http://www.jadedragonreturns.com/wp-content/uploads/2011/12/on-track.jpg


I stopped in at my bank as I literally drive right by on my way home, and paid off my monthly credit card statement in full, as I always do. Great, done.

While I was there, I also inquired about better rates on savings. Since I am already an established customer, and have $X in the bank, I am eligible for an increase on my savings interest. Not much to write about, but it's something.

I also asked about getting pre-qualified for a mortgage. I've researched this myself, but wanted to confirm that my numbers were correct so as to be able to clearly see what I am eligible to get for a mortgage, based on my credit history and income. Luckily, I have an excellent credit score; it was pulled when the realtor ran a credit check for my application to rent this home.

Not surprised to learn that I am eligible to look at and qualify for homes $150,000 over what I am comfortable in owning. I know what my bottom line figure needs to be, in order to meet all of my financial obligations and goals, and lead a decent lifestyle, although remaining frugal in the process. I have a set figure of how much I need my mortgage payment to be when all is said and done.

I have 83% of the amount that I will need for a 20% down payment towards a home in the price range that I feel comfortable with. I know what type of house I am looking for as well. Question is: which town? I am on the path to home ownership once again, and I do see the light at the end of the tunnel. I can see that if I stay the course, the end of renting is near, our next "forever home" is in my sights. Continuing as I have and plan to, I will have the funds necessary and most likely more, by this time next year, when I anticipate getting back into the real estate market.

5 comments:

Terry said...

Congrats on getting yourself in a position to buy a home again.It's a lot of hard work to get there but so worth it. I have lived very frugally for awhile due to a job layoff and health issues. I have found that I don't need a lot of "stuff" or a big house, Slowly, I am decluttering and trying to keep only the things that I really love to have around me. So I am very happy for you and the position you are in.

CTMOM said...

Terry
I am surprised that the IRS didn't audit my taxes, I had a LOT of donations to charity in the form of unwanted goods. Moving from my previous home and starting over with 1/2 of my furnishings and just the fact that I was moving, forced me to prioritize, to pare down to essentials.Do I still have "stuff"? yes, something I am keeping an eye on as I do not want clutter, nor do I relish the idea of moving it! I have a very strong sense of what my needs are, I try to keep that in focus. Will I most likely donate yet more when we leave this rental? yes, I am pretty certain. Meanwhile, I keep a trash bag tied to a closet doorknob. Too large or otherwise unwanted clothes are placed there for charity.

Marcia in rural WNY said...

I think you are very single-minded in your quest to own another home, and having saved 83% of the down payment in less than a year is phenomenal. I would hate to see you have to move into another rental, after putting so much effort into making this place more comfortable and more economical to live in. But you are right, landlords do like to up the rent frequently! My granddaughter has found a different apartment for next year (her senior year in college) and having given her notice, her current landlord has requested a Pet Deposit because she didn't pay one when she acquired her small cat. I told DGD that a deposit is something you pay on the way in, not on the way out! The landlord has mentioned keeping part of the deposit she did pay towards damages. I quickly informed DGD that any request to pay damages better come with an itemized list of said "damages." The apt is old and in fair condition, and I can't see any damages except maybe a hole or two in the wall from picture hanging, if that. Another landlord that tries to intimidate the young and inexperienced students into believing anything. Good thing her parents and grandparents are advising her! We keep saying "read your lease" about five times a day. I'm sure she doesn't have a copy but the boys across the hall do--they rented the two apts as a package--the only girl in the small efficiency and three boys across the hallway who are her friends. I think one of the boys has enough brains to have kept a copy of the lease! I'm sure your college kids are more knowledgable than most. Keep up the good work.

CTMOM said...

Marcia
I am a bit anxious to see what a renewal lease for this place looks like. Again, I have a bottom line rent amount that I am willing to pay for this place. I keep in mind the higher than usual cost to heat this place, something I anticipated, hence the installation of the wood stove, energy audit, weatherstripping, etc. yet not HOW much, and that was with keeping the heat at 60 when away from home/at night, and 63 for a bit in the morning and from mid afternoon until after supper, gradually shutting the 3 thermostats down, one zone at a time. It was COLD. I have $ invested in the installation of the wood stove, prorated over a few years, it makes sound financial sense. Just a year? no-even tho it was great during an outage. Moving will cost me, too. So, I await a renewal of my lease. LL has done a lot of neglected maintenance items since I first viewed this place. Frankly, that's not my fault that she let it go. Whether former tenants didn't report it, or her local person here (She is in FL)didn't do as diligent a job on keeping an eye on the place-normal maintenance on a home does have to take place, esp. an older home.

CTMOM said...

Marcia
Forgot to add: I will be documenting every room with photos before we move out, to show the condition of the place when we move out. I have 2 months rent for a deposit-a serious chunk of money here, never mind other parts of the country. I also plan on reading a possible new lease very closely to see if anything "new" gets sneaked in such as "tenant will be responsible for snow removal, lawn mowing and all exterior yard work." Currently, just snow and lawn mowing-that sort of thing.