Good deal.

Thank you guys!! And mamasays our offer got excepted this afternoon. :) We start escrow on Monday!

Awesome! Glad things are working out for you!

Update:

Thought I'd update because frankly, I'm excited and wanted to share.

So since passing on above house we kept looking and we recently went to see one Tues and immediately put in our offer.

It's 30,000 less than the other one, putting us in a more comfortable payment situation.

The house is 4/5 bd and 2 bth on a double lot. There's a pool and also an apartment attached to the garage which is bigger than the one we live in now. So if we rent that out that's an easy $500-600/month.

The previous owners have kept it up quite nicely, they've lived there for the last 20 years. And the best part is Vincent (my SO) isn't the least bit stressed out about this house like the other one. We're both really excited. :)

Good choice!

We decided to pass on the house. It wasn't worth what we'd lose by getting it. Thank you all for your insight and opinions, they were extremely helpful! Such a relief off our shoulders. I know buying a house is stressful, but we didn't think it should be THIS stressful. Lol Thanks again. :)

Sorry should have been more clear, the construction company building the house pays the closing cost for us.

You should be aware that USDA RDA loans do not pay the closing costs, they finance them into the loan, and only if the house apprised high enough above the sale price to allow closing to be rolled in without being upsidedown.

That's pretty unlikely with new construction and the current appraisal rules. Appraisers are generally only evaluating the home to see if it at least meets the sale price, and they appraise it right at that dollar amount unless there is a crazy mismatch.

Mama- His dad does maintenance and construction so he'd help us there. And we have furniture and all that already and house is new so it's newly painted. Only furniture we'll need is for baby but my sisters have given me a lot of stuff from their kids so we're pretty set on that. No need for moving trucks it's only a few blocks away and him and his two brothers all have trucks. And the 250 est for utilities is including electric, gas and water. Thank you for pointing those types of situations out. Like I said it's all new to us so there's a lot we need to consider and weigh.

And he does usually make more a month depending on his overtime, but the past few weeks have lowered the average because during the summer his work shuts down earlier due to the heat.

We've been together for 8 years and have a baby on the way. The only reason we haven't married is because it will mess up my financial aid for school.

And no down payment is required because it's an USDA loan and they pay the closing cost as well.

It's probably ok until you go back to work. Personally, I think he's crazy considering you're not married. If you split up he would likely have to rely on roommates to pay bills plus any additional child care expenses.

I don't even understand how the bank is approving the loan at 50%. Did he put down a large down payment?

No HOA and as for lawn care it basically just needs mowing so that's something we can take care of yourselves.

Half your income... Sounds scary really! Our mortgage is about 1/4 of what we make (we also have other debt like a car payment) and we are barely making it right now :/ And moving in the in laws... The more I read, the more this plan sounds like its going downhill! Good luck!

Justin- That's including the tax and insurance. $1582 is the grand total of what we'd be paying.

Is that $1600 figure with tax and insurance or without?

We were looking to do cheap too GPS but we live in a small town and only houses that are selling are new construction ones. :/ I do plan on getting a job as soon as I can and we're thinking of moving in laws in to help, but he wants to make sure he can do it without me or them since he's the only one with a steady stable income.

Yikes, with no other debt that might be doable, but my mortgage is only about 1/7th of our income. We bought cheap to make sure we could do it. We have other debt though.

Thanks Club. Definitely looking for honesty. Well we have until tomorrow to make it official or not and it's new to us so you guys are definitely helpful.

They say that 30% of your income should go to your mortgage. You have greatly overextended yourself. I would be concerned. Sorry but I must be honest.

Justin- No other debt at all. Everything is paid off. He's really good about that and budgeting things.

Mama- Yes it is. Lol I think it almost equals having kids. Worry and financial wise.

Buying a house was the single scariest thing I have ever been through. Such a huge responsibility.

Lol that changes things quite a bit. Half of your income going to a mortgage is kinda iffy IMO. I hope he doesn't have any other debt or car payments?

That is close

Oops sorry pregnancy brain struck again! His income is roughly 3200/month. So half goes to the payment.

A general FYI... Our electric company offers "budget billing" which basically means it's almost always the same month to month, you just carry a balance at some points in the year. We live in Florida, so our bill would be 200-300 in the summer but only 70-100 in the "winter". We pay about 130 every month and it evens out :)

I don't think you're cutting it close at all. I know people making ends meet on a lot less than that, paying close to the same mortgage. I'm guessing he qualified for a much more expensive house than he bought? That should give you an idea. These days they don't approve as easily if your income doesn't match. Back in the day a friend of mine got suckered into an ARM with a balloon payment at the end. When his rate adjusted his payment was about 90% of his income. How did they ever approve that loan??

Just from experience, always figure higher than you think bills will be each month. We had a hot spell for two weeks and almost had a heart attack when we got our last electricity bill. Also, compared to year 1, year 2 brought higher bills. Our mortgage went up by $50 extra per month after our property tax bill came in. Cable went up $10 extra per month because a few promo discounts we had expired. Just be aware of little things like that and prepare accordingly because they add up.

He makes on average maybe 6400/month and the payments are 1600/month. Not including utilities. I don't work right now because we thought it best to wait until I have baby (I'm 7 months). But I plan to after.

Utilities are probably going to be around another $200-250. Then rest is for food and miscellaneous stuff.

We're new to this. Do you think that is cutting it too close?

It's usually the biggest purchase a person ever makes in their life. It's a stressful purchase and a long term loan.

There are several ways out if things don't work out for whatever reason. Sell, bankruptcy, short sale, rent it, etc. Just because its a 20-30 year loan doesn't mean you're stuck there for that long.

We wanted to make sure if something happened to one of our jobs, the other persons income could support the household bills. I'm not sure if that's reasonable for most households though.

He should also take into consideration that he will get a tax break for the mortgage interest and property tax paid. Plus he will most likely have enough deductions to itemize instead of taking the standard deduction, allowing even more tax breaks. Add a child into that and you've got a nice sized tax refund each year.