It's so hard to find a house that you like. Well, let me rephrase that. One you like AND can afford. One house we went into smelled like moldy cat and the other was missing the front portion of the stove. Never seen that before. There is always something and you typically can expect that you are never going to find everything you wanted in one house. It's either price, location, the size of the yard or that extra sink you won't get. Unless your pockets are super deep and sometimes even then something has to give.
Last week we looked at a new build on our way home from another day of house hunting with our realtor. She happened to mention a new KB Homes Community and it was on our way home so we stopped in. I love looking at model homes even when I'm not in the market. We really liked it but quickly put it out of our head as an option. It's too expensive.
We kept looking. We put in an offer on a Short Sale condo in Eastlake. The price is right but we are dismayed by the $433 monthly fees. There Mello-Roos AND HOA's everywhere you look in that area and it can eat up your budget in one swallow. The commutes not all that great either. We already know we can't afford to live centrally and we would prefer a detached home but in this market you can't be too choosy.
Days go by and we hear nothing. We start getting cold feet about the commute and can't seem to stomach those high monthly fees. Mj's thoughts turn back to that new build. It's about a minute from where we live. We already know the commute is not all that bad and the HOA totals only $135. It's more expensive but maybe, just maybe we can do it because we won't have $400 plus in fees.
We call and find out they have only one lot left in this phase so we scramble around getting paperwork together and our check book so that we can snap up the last one in this price range. We submit to our 3rd credit check in about as many months because the builder will pay $6700 towards closing costs if we use them.
And then more waiting. Meanwhile, a different realtor who is trying to get us a foreclosure tells us he has a house for us. We don't know the price yet and likely won't be able to get a look inside for another week. What to do? Do we sign a contract on the new house when there is a possibility of another lurking?
Today I find out we are approved for the new build. The lending agent is going to send me an e mail outlining what we need to pay off and what additional documentation we are going to need to provide. At about the same time I find out that the foreclosure is going to be too expensive for us anyways. They have another one but they don't know the price yet. I wasn't totally thrilled with the pics but it's hard to tell without seeing it in person. I am already thinking this likely won't work and I probably won't like it better then the new build so I am able to put that out of my head and focus on trying to get the new house.
The cold hard numbers show up in my inbox. Not only did we get pre approved but it also allows for about $10,000 in upgrade design options. Time to do a happy dance right? Well, not so fast. The bank can approve us for a million bucks but it makes no difference if we can't afford the monthly payment. I talk it over with the selling agent but it's not looking too good. I am absolutely not willing to take on a monthly mortgage over what I feel we can comfortably afford. If it means we have to walk away from ten houses then so be it.
I drive home dejected and my mind racing faster then the cars whizzing by me on the freeway. If only I made more money. If only we had saved more. Is it really necessary for us to have a wedding? Oh, and what about all that money we spent on my car 3 months ago? This new house is slipping away and I am wondering how are we ever going to find a house in this expensive competitive housing market. Are we going to be stuck in the studio forever or settle for a dump? What can I do aside from winning the lottery or robbing a bank to make this happen?
We have a design appointment scheduled for tomorrow and I have already imagined where we will put our furniture. This is our one window of opportunity to get into a house. Prices are still low but it won't last and if we don't get one soon there might not be a second chance.
Beer with dinner? Hells yeah. I really need it right about now.
Showing posts with label budget. Show all posts
Getting Pre Approved
1.14.2010
You'd better not have any secrets from your significant other when you go into a meeting to discuss a home loan. If there was anything about your credit, income, debts, bank accounts or finances that you were keeping on the down low it will be exposed with a quickness to your significant other and some random stranger who will punch your digits into a computer and decide your fate.
In our case, there are no secrets but it is kind of odd to be sitting there so exposed. Things that you may not normally talk about even with people you are very close to is fodder for discussion. Nothing is off limits. Income, job title, bank account balances, who you owe, and what you owe. You can't run and you can't hide.
You may have an idea about what kind of house you want but as you divulge all of your financial matters you are about to find out what kind of house you can get.
Gone are the days where you could walk in there unemployed and be approved for $500,000. The banks actually seem to care about whether or not you can actually make your mortgage payment or not now. We went in there hoping for a certain amount and it turns out we may not quite get that but we are hopefully still going to be in a good position to find something decent within our budget. That is actually OK by me. I am fine with being "forced" into a house that we can afford rather then being ushered into something that may overextend us. From the get go that has always been my primary concern. I want a nice house but I am not willing to push the limits of our monthly income to get it. If that means we get a little bit less house then so be it. We will make it our own, be together, and be much better off in the long run by playing it safe.
We actually got pre approved already by our bank for exactly what we wanted but this home lending service works with the real estate agent we are hoping can get us into a foreclosure and he requires that we at least get pre approved with his preferred lender.
We have great credit and few debts. I wish I earned more money. Don't we all? There is no point in playing the blame game but I know that would help A LOT. I regret that I already own a property which will count against me with a lender.
What I regret even more then that is an old student loan debt that I co signed on for my Ex Husband. It's this black cloud over my head that won't go away. I hate it that even in divorce he is still dragging me down. I take pride in my credit and I hate that what happens to it is not 100% in my control. I paid my student loan debts off but I still have his lurking in the shadows of my credit report. If I had been smart I would have insisted on him figuring out a way to refinance and get my name off before finalizing the divorce. Lesson learned the hard way on that one. Don't EVER co-sign for anyone on anything. Just don't.
We won't have any problem getting a home loan. It's just a matter of how much.
In our case, there are no secrets but it is kind of odd to be sitting there so exposed. Things that you may not normally talk about even with people you are very close to is fodder for discussion. Nothing is off limits. Income, job title, bank account balances, who you owe, and what you owe. You can't run and you can't hide.
You may have an idea about what kind of house you want but as you divulge all of your financial matters you are about to find out what kind of house you can get.
Gone are the days where you could walk in there unemployed and be approved for $500,000. The banks actually seem to care about whether or not you can actually make your mortgage payment or not now. We went in there hoping for a certain amount and it turns out we may not quite get that but we are hopefully still going to be in a good position to find something decent within our budget. That is actually OK by me. I am fine with being "forced" into a house that we can afford rather then being ushered into something that may overextend us. From the get go that has always been my primary concern. I want a nice house but I am not willing to push the limits of our monthly income to get it. If that means we get a little bit less house then so be it. We will make it our own, be together, and be much better off in the long run by playing it safe.
We actually got pre approved already by our bank for exactly what we wanted but this home lending service works with the real estate agent we are hoping can get us into a foreclosure and he requires that we at least get pre approved with his preferred lender.
We have great credit and few debts. I wish I earned more money. Don't we all? There is no point in playing the blame game but I know that would help A LOT. I regret that I already own a property which will count against me with a lender.
What I regret even more then that is an old student loan debt that I co signed on for my Ex Husband. It's this black cloud over my head that won't go away. I hate it that even in divorce he is still dragging me down. I take pride in my credit and I hate that what happens to it is not 100% in my control. I paid my student loan debts off but I still have his lurking in the shadows of my credit report. If I had been smart I would have insisted on him figuring out a way to refinance and get my name off before finalizing the divorce. Lesson learned the hard way on that one. Don't EVER co-sign for anyone on anything. Just don't.
We won't have any problem getting a home loan. It's just a matter of how much.
The Saver and The Spender
12.03.2009
In every relationship there is usually a spender and a saver. It seems like some force of nature that draws opposites in this category to one another. Each person has their designated role and the silent and sometimes not so silent tug of war ensues as the pair makes their way through a life together where the subject of money is simply impossible to ignore. Just one more thing to keep things interesting and although it can be annoying at times I do think it can be a good thing. Guess which one I am? Yes, the saver.
The Sunday after Thanksgiving we went to a store to catch some of the Black Friday deals but without the massive crowds. Mj picks out a navigation system for his car. Now that I have one in my car of course he wants to be like me. After checking out the cameras and the flat screen TV's he decides on a flat screen as a Christmas present for his mom. The total for both purchases is around $750 and while my eyes are bugging out of my head he barely bats an eye.
The next day while I am at work I get an e mail from him saying that he's decided to keep the TV. What!! I can't understand this because although my TV is very small it is only temporary until we move and he has a large flat screen TV in storage and purchased a projector while he was overseas. Additionally, he has a regular TV in storage as well. Why in the world do we need essentially, 5 TVs between us? What is he going to get his mother now on top of this huge purchase?
I walk in the door after work and find that not only has he decided to keep it but it is already neatly set up and displaying Monday night football. The old TV has been relegated to a sliver of space between the wall and the closet. I look at it and him in stunned silence. I am even more confused when he tells me that he kept the TV because he has decided that he wants to get his mother a camera instead. OK....so why isn't the TV still in the box ready to go back to the store I ask. His reply is basically that instead of taking it all the way back to the store he just decided to keep it. Just for the heck of it.
I cannot comprehend such things. You see, I am a saver. If I have extra money which is rarely these days I prefer to save it rather then indulge it. A penny saved is a penny earned and although I really really wish that some day I could walk outside and pluck a dollar off of my own personal money tree I know that is never going to happen. My last major purchases came when I moved into my place almost five years ago and was forced to by a new computer when the old one died on me and some other things to get set up in my new place. Oh, and who could forget the Ugg Boot meltdown in October and the dominoe effect of anxiety my car purchase set off last month. I plan and save for my little mini trips here and there and I do buy clothes with coupons here and there when I can. Next year I will likely have to spend a hundred or so on a new cell phone and I don't even want to think about how much my wedding dress is going to cost.
In no uncertain terms I told him this was very upsetting for me considering all of our expenses we have coming up and the fact that he isn't going back to work until mid January. I can't afford to go to Vegas with him and am agonizing over a clothing purchase I made yesterday. I don't even know how I am going to pay for some of my upcoming expenses and he just decides to keep a $400 TV just for the hell of it. "It's not fair," I basically whined. Once I got him to acknowledge my feelings then I pretty much had to get over it. I trust him not to behave recklessly and spend beyond his means and when it comes down to it his means are different then mine. I have to take that into account. The more money you have the more you can spend. Just because my strained budget can't stretch to accommodate certain luxuries doesn't mean that I have to hold him accountable to the same tight standard.
That being said, we are going to sit down come January and work on our finances together. I am good at saving and budgeting and he pretty much buys what he wants. Mostly because he can. He is not out of control but to keep him on track I want to come up with a reasonable budget for him based on his expenses and income. Not mine. It's only fair. As a couple, we need to work together by discussing big purchases-not that I will ever make any!! We also need to settle on a system of savings and managing our joint finances that is comfortable for both of us. We have the joint savings which we do deposit money in and we have a joint checking account but haven't really done too much with it. I think it's always best for partners to still have their own individual accounts too.
When you think about it two savers together would have NO fun. Life would be filled with cheap low budget trips and stress over every penny. Two spenders together would find themselves in a world of financial trouble highlighted by way too many things and a life that depends solely on credit cards and debt. Don't get me wrong. If you make a lot of money by all means spend it. It's the spending AT OR BELOW YOUR MEANS part and putting money aside into savings that is key. Whatever those means may be and like it or not, that determines how much you are able to spend. You might be able to spend more if you make more but that also means you should be saving more!! Oh, and having credit cards does not count as having money.
Instead of fighting about these differences we can communicate, take a little from each, balance each other out and hopefully have the best of both worlds. Well, that's the plan anyways.
The Sunday after Thanksgiving we went to a store to catch some of the Black Friday deals but without the massive crowds. Mj picks out a navigation system for his car. Now that I have one in my car of course he wants to be like me. After checking out the cameras and the flat screen TV's he decides on a flat screen as a Christmas present for his mom. The total for both purchases is around $750 and while my eyes are bugging out of my head he barely bats an eye.
The next day while I am at work I get an e mail from him saying that he's decided to keep the TV. What!! I can't understand this because although my TV is very small it is only temporary until we move and he has a large flat screen TV in storage and purchased a projector while he was overseas. Additionally, he has a regular TV in storage as well. Why in the world do we need essentially, 5 TVs between us? What is he going to get his mother now on top of this huge purchase?
I walk in the door after work and find that not only has he decided to keep it but it is already neatly set up and displaying Monday night football. The old TV has been relegated to a sliver of space between the wall and the closet. I look at it and him in stunned silence. I am even more confused when he tells me that he kept the TV because he has decided that he wants to get his mother a camera instead. OK....so why isn't the TV still in the box ready to go back to the store I ask. His reply is basically that instead of taking it all the way back to the store he just decided to keep it. Just for the heck of it.
I cannot comprehend such things. You see, I am a saver. If I have extra money which is rarely these days I prefer to save it rather then indulge it. A penny saved is a penny earned and although I really really wish that some day I could walk outside and pluck a dollar off of my own personal money tree I know that is never going to happen. My last major purchases came when I moved into my place almost five years ago and was forced to by a new computer when the old one died on me and some other things to get set up in my new place. Oh, and who could forget the Ugg Boot meltdown in October and the dominoe effect of anxiety my car purchase set off last month. I plan and save for my little mini trips here and there and I do buy clothes with coupons here and there when I can. Next year I will likely have to spend a hundred or so on a new cell phone and I don't even want to think about how much my wedding dress is going to cost.
In no uncertain terms I told him this was very upsetting for me considering all of our expenses we have coming up and the fact that he isn't going back to work until mid January. I can't afford to go to Vegas with him and am agonizing over a clothing purchase I made yesterday. I don't even know how I am going to pay for some of my upcoming expenses and he just decides to keep a $400 TV just for the hell of it. "It's not fair," I basically whined. Once I got him to acknowledge my feelings then I pretty much had to get over it. I trust him not to behave recklessly and spend beyond his means and when it comes down to it his means are different then mine. I have to take that into account. The more money you have the more you can spend. Just because my strained budget can't stretch to accommodate certain luxuries doesn't mean that I have to hold him accountable to the same tight standard.
That being said, we are going to sit down come January and work on our finances together. I am good at saving and budgeting and he pretty much buys what he wants. Mostly because he can. He is not out of control but to keep him on track I want to come up with a reasonable budget for him based on his expenses and income. Not mine. It's only fair. As a couple, we need to work together by discussing big purchases-not that I will ever make any!! We also need to settle on a system of savings and managing our joint finances that is comfortable for both of us. We have the joint savings which we do deposit money in and we have a joint checking account but haven't really done too much with it. I think it's always best for partners to still have their own individual accounts too.
When you think about it two savers together would have NO fun. Life would be filled with cheap low budget trips and stress over every penny. Two spenders together would find themselves in a world of financial trouble highlighted by way too many things and a life that depends solely on credit cards and debt. Don't get me wrong. If you make a lot of money by all means spend it. It's the spending AT OR BELOW YOUR MEANS part and putting money aside into savings that is key. Whatever those means may be and like it or not, that determines how much you are able to spend. You might be able to spend more if you make more but that also means you should be saving more!! Oh, and having credit cards does not count as having money.
Instead of fighting about these differences we can communicate, take a little from each, balance each other out and hopefully have the best of both worlds. Well, that's the plan anyways.
*Frugalista Money Tip: Spend at or below your means and save at or above your means*
Fall Shopping Extravaganza
10.16.2009
Plane Ticket $435. Car Registration $330. Getting some nice quality fall basics that look good on me and make me feel good. Priceless. So, I did it. I knew that if I waited even a week that It wasn't gonna happen so on the way home from work on Monday just over 24 hours after the Ugg meltdown I drove to Burlington Coat factory and bought a classic Brown Miss Sixty Pea Coat with a hood and a finely detailed pleat in the back.
You can't go wrong with a classic Pea Coat
Then I brazenly drove to Macy's where I proceeded to try on every tall boot in stock until I discovered the comfort and casual chick effortlessness of the Brown Steve Madden suede slouch boot. It only took a minute to fall in love with a camel colored pair of Alfani Flex n Step pumps. The pumps are only about an inch high and have all of this wonderful padding inside so that they feel like Easy Spirits on the inside but still look fashionable on the outside.
I got a similar pump in camel
I got this boot in brown
They were all on sale and will make great additions to my slowly growing wardrobe. A friend of mine was looking at some old (very embarrassing) pics of me and he made the comment "You've never really been into fashion." Way harsh. But it's true. I have never been stylish or even close to trendy. Not for lack of trying, but I just haven't ever had the best eye when it comes to putting things together. And you really need that when you are trying to look good on a budget. I'd buy something just because it was cheap without really considering the garment itself and how it's going to look with other things. So, I'm workin' on it. Sometimes I wonder why I even care. Out of all of the things to care about in the world what difference does it make if I look cute? Well, if it makes me happy and is not hurting anything then who the hell cares why it matters!! If it does it does.
Then Mj booked our airline tickets to Delaware. Whoa! I could feel my anxiety meter going up a bit but for better or for worse I was really glad that I didn't wait because that would have surely been the nail in the coffin for my Fall shopping spree extravaganza. Yeah, our anniversary is next month and Christmas will be here before we know it. I have already started making my little lists of money spent vs planned future expenses vs my budget. But it's OK. I went on a mini shopping spree and the sky didn't fall down. Big surprise there! It really is gonna be OK. Now, the only question is when the heck am I gonna get to wear the jacket and boots. Fall was was in the air last week but today It's supposed to be 80 degrees!
Ugg Anxiety
10.12.2009
I have a problem with spending money. It's not what you're probably thinking though. Whereas most people have a problem with spending too much money I have a problem with spending too little. How is that a problem you might wonder. Well, when buying a pair of Ugg boots (that I actually have the money for) causes me to burst into tears unexpectedly while telling Mj about them during our cyber Date....Well, that is when it could be considered a problem.I'm very organized with my bills. I get paid once a month, pay my bills online once a month, and go to the ATM once a month. I have a set amount of money transferred automatically from my checking to my savings accounts so I don't even have to think about that. A lot of people find the one paycheck a month difficult, but it's no problem at all for me. I know how to make a budget and stick to it.
I was feeling pretty footloose and fancy free when it came to my finances for a change and that felt good. I was looking forward to a few fall clothing purchases I'd been planning on. I happily bought a few shirts and everything was fine until I bought the Ugg boots. Suddenly all of my money anxiety came rushing back to me full force and I began to feel that I shouldn't buy anything at all for myself for the rest of the entire year. What made me think I could buy a pair of $140 Ugg's when I have car registration due ($300!!), an out out state trip planned, a special anniversary outing to plan and Christmas around the corner? It hits me that the only reason I've been feeling ok about money lately is only because I really haven't been spending any. Aside from the necessities like gas and groceries and food out here and there I really haven't spent too much money on myself in a while.
It's not like I buy a lot of things for myself. I don't have the most expensive taste. Well, except for my jeans which I feel are a must after years and years of wearing cheapos!! But, I know when to stop. I have my core set of designer denim that look and feel great so I won't be buying anymore for well...ever. I have one exquisite expensive purse (that I never in a million years would have bought for myself); but that was courtesy of Mj (bless his heart!).
I actually got some off brand cheap Uggs last year and one of the boots actually stretched out around the leg. They didn't even make it one season. I am that person who will take a trip but not want to buy any souvenirs, partake in any activities that cost much money, or even eat at a nice restaurant while I am there. I am usually so thrilled just to be on the darn trip and I feel like I can't spend much more then what it's costing me to travel there. About 3 years ago when money was tighter then ever I actually forgot what it felt like to be in a mall. I stopped going because it was too hard to be there knowing I couldn't buy a single thing and if I needed any clothing item at all for any reason I was only allowed to go to Target, Walmart, or Old Navy. I couldn't even take joy in window shopping. I am okay with buying a top or a pair of shoes here and there but the minute I exceed what is comfortable for me I freak out. Is this what I have to go through every time I want something special just for me that costs more then $100 dollars?
Well, it's pretty ridiculous. I've been saving money since I was 16 years old and I have never had credit card debt beyond what I could reasonably pay off one purchase at a time. I use a credit card for monthly expenses to get a cash back bonus but its within my budget so I can pay it off monthly. I have always done the right thing when it comes to money and finances-it just came naturally to me. So, why can't I indulge every now and then? Part of my rationale for not wanting to is that my fiscal discipline is what got me where I am in the first place and I don't want to mess it up. I am also of the belief that you can't have everything you want. If there is something I want that I don't feel I can reasonably justify on my income then I can't have it. Plain and simple. I may not like it but I can live with it because that's just how it goes. I already feel like I don't save enough although I do what I can, so that reason alone is why I shouldn't be out spending money on expensive items and outings.
I work hard. I save. I am responsible with my money. I know deep down that I deserve the opportunity to enjoy the fruits of my labor every now and then but there is always that voice in my head saying "YOU CAN'T HAVE IT!!!"
So, I am working on allowing myself to live and enjoy things because I do realize that a lifetime of denying myself this and that just because I'm not rich is really not what I want for myself. I will never be a shopaholic. There is only so much money available in my budget for that, but I shouldn't feel bad for using it, within my means. The tears weren't really about the Uggs. I love those cozy boots and I don't regret buying them. What upset me is the anxiety that I so often feel just from buying something that should make me happy.
Well, it's pretty ridiculous. I've been saving money since I was 16 years old and I have never had credit card debt beyond what I could reasonably pay off one purchase at a time. I use a credit card for monthly expenses to get a cash back bonus but its within my budget so I can pay it off monthly. I have always done the right thing when it comes to money and finances-it just came naturally to me. So, why can't I indulge every now and then? Part of my rationale for not wanting to is that my fiscal discipline is what got me where I am in the first place and I don't want to mess it up. I am also of the belief that you can't have everything you want. If there is something I want that I don't feel I can reasonably justify on my income then I can't have it. Plain and simple. I may not like it but I can live with it because that's just how it goes. I already feel like I don't save enough although I do what I can, so that reason alone is why I shouldn't be out spending money on expensive items and outings.
I work hard. I save. I am responsible with my money. I know deep down that I deserve the opportunity to enjoy the fruits of my labor every now and then but there is always that voice in my head saying "YOU CAN'T HAVE IT!!!"
So, I am working on allowing myself to live and enjoy things because I do realize that a lifetime of denying myself this and that just because I'm not rich is really not what I want for myself. I will never be a shopaholic. There is only so much money available in my budget for that, but I shouldn't feel bad for using it, within my means. The tears weren't really about the Uggs. I love those cozy boots and I don't regret buying them. What upset me is the anxiety that I so often feel just from buying something that should make me happy.
I still have money coming to me for those two model gigs I did back August. I WILL get those fall items I've been looking forward to and I WILL enjoy it.
Have You Seen My Bread?
10.02.2009
Have you seen my bread?
Don't you hate it when stores suddenly, inexplicably, and without warning stop carrying a product or brand that you have grown accustomed to. They put it in the store, they make you love it, then they take it away! How cruel.
I am a carb fiend and sliced bread is very important to me due to my morning PBJ habit. I loved the Delightful Sara Lee bread because it has a decent whole grain and fiber content all for only 45 cal's a slice. What I don't love is the price. I was buying it for a while regardless, but when it got up to $3.99 (although I can get it for a little less at Walmart-if I am in the mood to deal with that madness) it became ridiculous and so I needed to find another option. Enter Nature's Own wheat bread. It showed up right on time smack dab in the middle of my bread dilemma. Only $2.19 with similar nutritional values as Sara Lee for only 5 calories more. It even had a few more slices per loaf. I found it at my usual grocery store and I could even get it at Walmart if I happened to be doing some shopping there. Problem solved!
Until I was at Walmart a couple of weeks ago and they didn't have it. "Darn it, now I have to stop by the grocery store too." And to my dismay, they didn't have it either. So, there I am still searching the bread aisle as if it will somehow magically appear out of thin air just because I want it to. When that doesn't happen I start examining each and every brand to find an alternative because I refuse to pay Sara Lee prices. I eventually settle on Orowheat "Soft Family." Yep, that's what it's called and the bread certainly lives up to that name. At 65 cal's per slice is the lowest I could find and it has a reasonable fiber content. The price isn't as good as Nature's Own but it will have to do. I supposed I could try other grocery stores but grocery shopping is such a huge inconvenience to me even when it's close so I am not about to go out of my way to other stores even for my coveted bread. You can bet that every time I go to the store I will be looking for it in case it makes a comeback though.
Am I being cheap? Maybe, but I have always been big on bargain shopping and coupon clipping not only in the grocery stores but in the shopping malls too. Am I obsessing too much over the calorie count of my bread? Probably!! As far as I'm concerned on both fronts it all adds up and every little bit counts.
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