Last week I called my brother-in-laws 'mortgage guy' because the time is drawing near where I may not have this little dollhouse any longer. It was something I've known was coming for some time, a couple of years even, but even so has managed to sneak up on me.
For the last few years I have been paying down chunks of debt and socking away money in hopes to better my financial situation. I was feeling pretty confident. I had paid down my line of credit, my credit cards and had, through coincidence or divine intervention, managed to divest myself of a $300+ a month car payment and have my insurance payments lowered in the process. All I had left in the way of debt was my student loan payments.
I don't have a full down payment saved but nonetheless I was reasonably sure that I had a good shot at something modest, in the 150K range.
So I called the mortgage guy and after going through my stuff he informed me that although I'm currently on interest relief for my student loans, he'd have to report what I'd be expected to pay once that relief runs out. Which is in the ballpark of what I'd be paying monthly for a mortgage. Hence the continuing applications for interest relief.
What did this mean for me? Basically that if he could even get me approved, it wouldn't be for anything substantial and I'd probably not be able to afford anything that didn't include the word 'Mobile' in the description.
Needless to say, I was pretty devastated. There was a possibility that I could have my loan payments changed so that they were less but that would involve going off interest relief and having thus having to pay every month. So theoretically I'd be more able to afford a house, but realistically I'd be less able to afford it, because my imaginary $600 + payments would change into very real $250 payments that I would have to make, instead of paying what I can, when I can as I am doing now. The other downside of this would be that I would probably be paying my loan for the rest of my natural life.
The other option was getting a co-signer, which is not only hard to come by, but at least if the mortgage is in my name only then I'm the only one that gets fucked if I default.
That day I cried a lot at work and in the evening Guy For Whom I Have Not Come Up With A Blog Alias™ helped cheer me up by engaging me in some black humour as we scoured MLS for houses 'in my price range' across Canada. Or more specifically, in the $25,000 and under price range.
It's amusing reading the descriptions and lack thereof of some of the more run-down properties that people are trying to unload. At this point, you know the agents have just given up trying and in some cases, such as this beauty in Thunder Bay (which could be yours for just under $10K), you get the idea that the agents aren't so much trying to entice potential buyers as warn them. Descriptions ranged from your typical "Handyman's Special! Needs TLC!" to "Value is in the land, not the building!" and my personal favorite This-Realtor-Has-Just-Given-Up line -- "It Is What It Is!"
We also discussed the possibility of moving this gorgeous little church from Alberta to Ontario.. I could potentially buy it outright with my down payment money. I'd just need to transport it and find some land to plop it down on. Sounds easy enough, right?
Anyone got a truck, a couple of police convoys and a shit-load of bungee cords?
With a clearer head I decided I would speak directly to my bank, having been a loyal customer for the last 15+ years, while never asking for so much as an overdraft. I came out of the meeting feeling more optimistic, mainly because being a bank and not a broker, they CAN take my interest relief into consideration, so my application will be based on what I am paying now, not what I may theoretically be paying in six months. This is a good thing, potentially. It will be a few days before I hear back from the bank though.
So now, now I play the waiting game.
|"Waiting game sucks. Let's play Hungry Hungry Hippos." - Source|
B) The link to the Thunder Bay house is dead. This could possibly mean that it *gasp* actually sold, in which case, I want a cut. But I think it's more likely that the place got washed away in the midst of all the flooding. Thoughts are going out to anyone, including my former in-laws, that are in the area. Hope you all are safe.