Let's Rethink This Whole Buying Thing...

Well there it was; a sealed envelope leaning up against the door to my apartment with the complex's logo staring right up at me. It was the lease renewal for my unit. Has it been a year already? Well not entirely, but the management likes to start the ball rolling at least two months before the expiration of your current lease just as they did last year when I decided to stay. Of course at that time, my rent did not increase. Reluctantly I opened up the contents of the envelope and sure enough, rent for the new lease increased 5%, bringing the monthly payment higher than I have ever paid in the past. I wasn't too surprised by the increase but I had hoped to linger at the original amount longer so that I can save money, not barely get by. I lived in the city before and my rent was higher which was why I moved out to the burbs.  I love my place, much better than what I had, and even though I can afford the increase, it's still a disappointment.

The increase in the apt got me thinking about buying instead of renting.  In today's market, I can have my mortgage and my taxes probably at the same rate as my rent is. So I checked to see if I could qualify for a mortgage.  Much to my surprise with the market the way it is in addition to a my fabulous credit rating I did qualify. Excited by this revelation I got in touch with my good friend Duchess who put me in contact with her realtor. My other friend Izzy put me in touch with a broker. Izzy felt that I would qualify for FHA. I spoke with Izzy's broker and found out that I would qualify. With is little as 3% down, the lender mentioned she could roll the closing costs into the mortgage, so at closing, I wouldn't have to come with anything additional other than the application fee, attorney's fees for reviewing contract, etc. beforehand  So at this point I'm feeling kinda confident that I can take all this on. 

Within days, the realtor found a sweet place in Arlington Hts. Brand new appliances, including a washer/dryer in the unit, two-bedrooms, one bathroom condo on the 2nd floor, plenty of parking and heat included in my assessment fees, although high, taxes were surprisingly low for that area. Terrific deal etc., but then realtor confirmed that an offer had already been made and they were 'in negotiations'. She also said that this unit was not FHA approved and doubts if I would be able to make an offer without considering an alternative plan.  I'd have to go with a conventional loan and 5% down, plus closing costs, etc. Ouch! Although I do have the means to do the 5% down, it wouldn't leave me enough 'emergency' money.  And honestly, I'm unsure where I'd come with the $455 application fee, plus all the other fees.  It's crazy and I'm thinking, way too much to handle right now.  I need as much time as possible to save more money, etc., perhaps give myself a year or two and go from there.  I have to think about this realistically.  All because one can afford to buy a place does not necessarily mean you can afford to live there.  It is a daunting task to go through the entire process of buying something, especially when deep down, you don't feel as ready as you initially thought and that slight increase in your rent doesn't seem so bad afterall.