The need to knows of buying in the current market.

So we got the house!!! Yay us! However others I know are looking to jump into the market right now so I figured it would be wise to post some basics that we have discovered through the process.

1. Fixed rate only - Do not ever ever EVER do an adjustable rate. That is how so many have lost their homes now.

2. Short sale = no bueno. Short sale means that the seller is selling for less than they owe so your offer is pending bank approval not owner approval. Usually this is someone facing foreclosure trying to get out before that happens. Another negative is that they take like 90 days at least for processing. Finally it also means that until closing other offers will be looked at so if someone comes along and offers $5 more they could very well take it from you.

3. No 100% financing - If someone offers you this there is a twist. Read the fine print and everything that goes with it.

4. Taxes, mortgage insurance, and homeowners insurance are often not added into a mortgage calculator so remember you will be paying these each month on top of what you finance.

5. Mortgage insurance is paid until you have 20% equity in your home. The faster you get there the better.

6. Pick the payment you want to pay BEFORE you look and prequalify. We went by what we want to pay not by what we qualify for. No point in being house poor.

7. You need credit above 650 for FHA and 690-750 and above for a conventional loan.

These are just the basics that we have learned. Do your due diligence. Research the are for comps, schools, and crime to get a good idea of what you are moving in to. If there is a houseing association read their rules and make sure you can live with them. Most of all good luck. This is an amazing time to buy that first home.

Made an offer!!

We made an offer on a house we love. One thing I am discovering in this process is that I am terrified and excited all at the same time. This is the start of a wonderful chapter in our adult lives. It is absolutely time to make this leap. It also is the start of huge responsibility. If the dish washer breaks we have to fix it. I love that we will have something beautiful to show for all of Hub's hard work. It is way past time for him to feel like the money he earns goes to something fun and beautiful and all ours. I am excited to have a place for the girls to play. I am excited to have more than one bathroom! I am excited for not hearing stomping above our heads at all hours of the night. I am so excited for actually using my closet to store clothes rather than tools and Christmas decor and books! I am terrified. Have you noticed how expensive a good water heater is? And window treatments and paint colors and flooring. Appliances can knock you on your tail. We need this step and this journey into home ownership. Wish us luck!