WOW....We've Learned A Lot in 24 Hours....

So, we thought we had it all figured out (well, maybe not ALL) but we were quite humbled as we talked to our mortgage broker last night. So, you know Jon and I thought we had a good price range in mind and figured out what we thought our monthly payment would be. We were feeling pretty good and we're already pulling houses in that range. No problem, right? WRONG! Gee, we didn't think to factor in not only our mortgage loan, but also interest, taxes, homeowners insurance and PMI. And, what is PMI, you ask? If you don't know, we were right there with you up until last night. Private Mortgage Insurance. Meaning, if you can't put at least 20 percent down on the cost of your home, you'll need either need to pay an additional monthly cost for PMI OR take out a piggyback loan. Seriously??? So, let's say you're looking to purchase a $300K home and if you don't have $60K to put down as a down payment, you'll be incurring this fun, new cost! So, we had to reevaluate our price range and take it down a notch, just like our mortgage broker did to us - take us down a notch! However, we're still finding very nice homes in the same area in a price range we realize we can now afford.

It's amazing the things we've learned in this process...and we just started three days ago! For instance, escrow account or no? Uh, for Jon and I, an escrow account is THE way to go but I guess it can be different for everyone. And, we decided to look at multiple mortgage lenders - why not let them battle it out for us to get us the best rate??? So, please take a look at the UPDATED houses we've included that are more up our alley. And, when I say up our alley, I mean, houses that we can afford:) Check them out and let us know what you think. We're meeting with our real estate agent tomorrow night at 6:30 p.m. and we can't wait! I am sure I will have more to report tomorrow night so stay tunned!