Number crunching

As  a good little home shopper, I applied for pre-approval for a home loan near the beginning of our shopping experience. Today we got the results: no can do, based on our potential debt-to-income ratio. We’d either have earn about 30% more and prove it in the next month, or pay off our current house. We don’t have the cash to both pay off our house and put 10% down. So I freaked a bit. Oh no. What are we gonna do. We are going to have to move; we’re giving our house away! Blah blah blah.

And then, it occurred to me (or, as I believe is more accurate, the Holy Spirit whispered an idea in my ear): What about paying off our current house and putting less down? I asked the mortgage broker if paying off the current mortgage and putting 5% down would work, and he said yes! So I called to get a payoff letter and dude, we are going to own a paid-off house. And be able to buy our dream property.

But, given this new hesitation from the mortgage firm regarding our financial solvency, both Andrew and I wondered if we were biting off more than we could chew financially. So this evening we dedicated ourselves to some number crunching. And we found that with our bare minimum income we have more than enough to pay all of our projected financial obligations for the new house, including extra money for things like gas, because we will live further away, etc. It also provides for our health insurance, which we have to fund now, taxes, tithing; basically everything I can think of fits into the smallest number I think we will make this year.

And that’s pretty awesome because everything we will make with our new LLC, L33t Tech, can go toward the innumerable small and large things we would like to get for making our new house our home.

Yes, I’ve started making a list 🙂

We plan to start telling family members this weekend. I can’t WAIT to tell my mom. She’s coming to visit in April and I hope we will get to show her OUR new house then!!!

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