Wow! Things are moving quickly! Today we find out for sure if we can get a loan! I talked to a mortgage broker for about 30 minutes yesterday, and his ONLY concern is our lack of recent credit history. We tried to stay away from credit cards for many reasons, and he said that isn't good for buying a house. But, we have a little bit of recent history so it may work out anyway. He said that he thinks it will be fine. He's going to run everything this morning and let me know if we qualify! I'm so nervous!
Okay... here's a bit about the situation with the house. As I said before, when we walked in, our first reaction was that it needs more work than we thought just by looking at the pictures. It didn't really surprise us because the price has dropped significantly in the past 2 months. The price is significantly less than the other houses in the area. The work that needs to be done is minimal, though, compared to what has already been done. They have already put in a very nice, expensive kitchen (with a brand new gas stove/oven, dishwasher, microwave, silestone counter tops, a very nice tile backsplash, very good cabinets, etc), a new a/c, an addition, etc. Really everything just needs to be finished. The tile needs grout, some painting needs to be done, the ceiling needs to be completed in the addition, a little bit of work outside, some electrical work (replacing the breaker panel), etc. So because of that, we couldn't get an FHA loan (they are VERY picky about what houses they give loans for!). And the owners aren't willing to put any more time or money into getting it finished (they have already significantly dropped the price to just get it sold quickly). So, my realtor proposed an idea: we increase the loan amount a bit, and they hire a contractor to do the finish out (just enough for us to get a loan). The sellers and their realtor were extremely happy with that idea and already have a contractor that would be willing to do it and get paid at closing! They suggested that we use their mortgage broker because not only is he in the same building as their realtor, it would just be easier to do this type of transaction all at the same place (because it's a bit different- it would be much faster that way). He knows their realtor very well and said that she always make sure things get done well, and in a good amount of time. So from what I understand, she has been on top of him to make sure this gets done because they are all very excited about this. They were expecting to get an investor to buy it, but are happy that we are a family that loves it a lot. I was a little nervous about using a specific mortgage broker (one that they wanted us to use), but I have been very happy so far and I think that this will make the loan push through. I also trust my realtor and she seems to think it's all working out great. So, we'll see!
All we're waiting on now is to hear that we have the loan. Whew! I'm SO nervous!
Robert and I are expecting the worst but hoping for the best. We know that if it doesn't work out, that it isn't the right house. If it does, then it is! We were having some fun last night just dreaming of actually owning the house, which rooms we will put which kids in, what work we want to do to it over time, etc. It has SO much potential! The only downfalls are that it only has one (small) bathroom and it doesn't have a garage (though it has a slab where a garage used to be). The kids currently use our bathroom most of the time anyway :), so the one bathroom isn't a big deal; and we felt that we could add on over time. Robert is generating ideas of how he would do that. I'm thankful that he can do all of that work. He has also been looking into how much it would cost to build a garage or get a storage unit temporarily until he can build one (we would need some kind of outside storage shed). There's a good size yard with porch and the slab for a garage, so we have plenty of space outside. Again, one of those things that we would just do slowly.
It's funny because most people look for a house that they don't have to touch... that is beautiful and updated. We were looking for a house that needed some work so that we could put our personal touches into it (and it costs significantly less!). If this house were already updated, it would probably be close to $175k (or more). The most important things to us were the neighborhood and the house having great potential.
I think what is so crazy about this whole deal is that I assumed we would never be able to buy a house. And even if we can't get a loan right now, we will be able to get one soon (we would just have to establish some credit first). I thought our credit score would inhibit us (because of stupid decisions that we made several years ago), but that doesn't seem to be a concern at all! The concern is the fact that we haven't been using credit!
Ultimately, God is in control, and if He feels that we are ready to buy a house we will; if He doesn't, then we won't :). Is it weird that I almost feel bad about possibly buying a house? I feel that we don't deserve it (which, no one really deserves anything, that's why we have Jesus!). I am praying about it, but I feel bad to even ask for something to work out. That probably doesn't make sense, but that's just my brain. I know that if we do have a house that things will be much easier/better for our family because we'll have a place to call our own. And I love that it's simple. It's a cool, old house. It's not expensive, but is just right for us. Wow! I could just go on and on, but I will stop for now. I'll let you know when we hear something!!