Budgetting

Josh and I have been talking more and more about buying a home. We both got terrific raises this year, which helps us to save a good chunk of change. So this past week we attended a homebuyer education class to learn a little bit more of what it takes to be able to afford a home. It was honestly a great class, and we will be able to use our certificates to gain some sort of credit towards the purchase of a home.

For me, this summer I have been working more and more on the American Dream homebuyer program in our office. So, essentially, I am helping first time homebuyers with federal assistance. Well ever since I started this, I have really learned a lot about what it takes to buy a home. I have also seen A LOT of people who are in worse situations than Josh and I and are already buying homes! It got me to thinking that we could probably do this!!!

Well after our class and individual meeting, I am sure that we can do it! Combined we have about $6,000 saved right now, but we are trying to save much more than that to buy down the principal amount of the loan, thus creating smaller monthly payments. In fact, it would be great to have a 20% down payment (although that could be stretching it a bit) so that we don't have to pay mortgage insurance premium. We actually did some budgetting and took a look at our cash flow. Right now, we take in roughly $4,050 a month together, and our monthly expenses are about $2,000. We have been saving quite a bit (at least 20% of each paycheck), but we could save even more (especially after summer when we are travelling home less often). If we save 20% of each check, by next year we will have $10,000 additional saved, but sometimes we save more than that! Both of us also have good credit scores (Josh has a 701 and I have a 692), so thinks are looking great for us!

We are looking at homes between $60,000 and $110,000 (which is actually in the lower end in GRand Forks), and Josh definately wants to look in the country, but we can't be too picky. However, we have time on our side!! We also need to put some of that aside for a wedding!! Ideally, Josh and I want to be ready with a great down payment by the time that I graduate.