Buying our new home,, help!!!

[Lalapops]

I need help, some serious help!

My hubby (I have to learn to put DH) and I are looking to speed up our quest to buy our home. We were looking to save up money this year and at the beginning-ish of 2009 (around tax return time) we will have LOTS saved up and go from there.

We can no longer stick to that plan. We rent the home we’re in now, and our landlords are really great people to rent from, but the house is an 80’s “trailer” that has some repairs to be done that we feel is unfair for the landlords to have to put a lot of money in here. We had already talked to them about us moving in the near future and they told us to “burn the place down” when we moved, that at their age they will not want to rent out to someone else (we help a lot with yard work and just helping out where we see it is needed.)

It now seems like the roof has started to leak from just about every corner. He wants to fix it, but we asked if they were seriously thinking to not rent the place out after we move, he said “yes.” We hate the thought of him dumping $2,000.00 plus into a place we’ll move out of in a bit anyways.

With our first plan into play, I have several “jobs” lined up starting in August when my youngest starts school and I have some time with no children. But… we need that extra income now, or work some stuff around to take its place.

I know that our budget is a bit lenient and I can move a few things here and there to help, but just don’t know how too well,, I know there are areas we can probably cut back on to help, just “don’t know how.”

If I post up my budget to you ladies, do you think you can help me out? I am not asking for you to do all my work, I am crunching numbers, but maybe a fresh set of eyes can see something in a different perspective. and if you have any "supplemental income ideas, please share.

I have been on this site for a few months (actually joined in February) and have so far managed to be able to cut my grocery bill down. I have bought used clothes, have learned a few tips here and there. If there is any advice you can give us, we will take it all into consideration.

Thank you all!!!

[FrugalMomof3]

Is it possible for you to purchase the trailer and do the repairs? Would the lot be included?

As for helping you with your budget, go ahead and post it here so we can help you out.

[Holly]

What Tracy said...

[Lalapops]

Thank you 2 already!!!

We cannot purchase the trailer, well maybe we can but it is on our landlord's property on five acres of land (gonna miss it!) and they are not wanting to sell any of the land and we cannot afford to buy it all (they will not sell it anyways.) The trailer has recently started to have lots of problems. One being that our electric bill has more than doubled in the last 8 months to a year. All AC ducts have been checked and with the new leaks coming up in the ceiling, they believe that the insulation is "soaked" and will soon , if not already be mildewing and we do not want the kids to go through that.

I will post up my budget though,, thanks!

[alch]

Is ther anyway you can talk to them about buying part of the land? Can you fix the place and not pay rent. If not, you may need to rent another place if possible. Angle Food Ministry is a godsend for many people. Check into it... They have a website which explains their program. You are in my prayers.......

[Lalapops]

HUBBY'S INCOME, he gets paid every two weeks, monthly = 2,600.00 (bring home)

MY INCOME, about 75.00 weekly* and 125.00 on first Saturday, monthly = about 425.00

TOTAL MONTHLY INCOME IS $3,025.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

TITHE & OFFERINGS, 360.00+
RENT, 400.00
VAN, 351.39
ELECTRIC , up to 500.00
CABLE, HOME PHONE, INTERNET), 124.00-ish
INSURANCE (vehicles), 351.72
GAS, Jeep, 320.00,, Van, 120.00
BRIAN’S LUNCH, 25.00
JESSICA’S LUNCH, 10.00
2571.11 (with 500.00 for electricity)

GROCERIES,, I have these down to $75.00 each week. The 125.00 I get on the first Saturday of each month, I use to stock up my freezer with meats, keep my school supplies stocked (I can probably cut back on here a bit, but I am wanting to already have school supplies for the next school year) and the dog supplies stocked for the month.

KIDS’ SUMMER CAMP,, The cost is 280.00 for the two kids. I pay $30.00 each week, until I’m paid for and I have all their “needed supplies, except for one bathing suit and two shorts (I’ll look at “thrift” for these, because even if I get them back, they might have to be trashed anyways, hehehe) When the Club year at church begins this next year, I just want to pay as much as I can each week (up to 20.00) to get a head start on this

EXTRA SIDE NOTES:

The lunches noted above are the wo kids that go to school, my bay girl will join them next year.

My hubby's job pays his lunch and my baby girl and I have leftovers usually.

We know that our electric bill will be down to 200.00 each month easily. This home has aged a lot in the past year, that is why we were looking into moving in the first place.

We are taking our loan at the lowest possible so that our payments, including all the “includings that go here” are no more than 800.00 total each month.

* This income is 125.00 for now, but when school begins it will be 75.00, but I have not added the extra 120.00 each week I will be making when school starts.

Once we get into the home, we are wanting to look into paying more on the van payment to pay them off and then my hubby will have a car allowance at work that will pay for him to get a new vehicle, but after we pay off the van, we want to put the "van payment amount" into the house payment.

My hubby's pay takes out our life, health, dental isurances out before he brings the money home. and we do our taxes so that at the end of the year we have paid them lots of money and do not owe, but we rather get money back, things will change abit after buying, but we will keep his work taxes the same.

We barely eat out and when we do, my hubby's job usually pays for it (gift cards, or we use themas gifts to some people, hehehe)

We do have a Credit Card, but my hubby uses it for work purposes only and they reimburse him fully for it each month.

If I think of anything else, I will let you know.

Please share yur thoughts.

[dianne9106]

First, I recommend that you read any of the books Dave Ramsey has written. He will help you sort out the best course in making a decision like this. Dave also recommends strongly that trailers should not be purchased - they plummet in value so quickly and are not a good long term investment of your money. Perhaps until you and DH can save enough for a down payment, perhaps you can rent somewhere else, but on a 6 -12 month lease. we are in the military and while being a home owner is awesome, I would have waited before we bought our home. We took a huge gamble that we were going to stay here more than two years. It turns out that we will stay here 4 more years - which is awesome , but it could have turned out a lot different for us. My point - having lived in rental homes and always someone else home we desperately wanted to be home owners and paint our walls whatever color we wanted to and call it ours We could have ended up moving within less than 2 years after arriving here - then we would have had to sell our home and maybe break even or possibly rent it out. So take your time, move somewhere else that you can rent until you have the money and have just the right place for your family. Best Wishes!
Dianne

[forHISglory]

Your budget looks pretty tight already; I don't see a lot of fluff in there. I'm glad to see that you tithe and encourage you to continue being faithful in that. Are you willing to cut cable? If you did, would that save you much? Can you check out other insurance to see if you get a lower bid? You also might try to trim just 5-10 dollars a week from grocery to see how that goes.

I agree with another poster that you should not try to buy the trailer. You'll lose money in the long run, especially with the repairs that are needed.

[nessarowdy]

Is there any way for you to find another rental? $500 a month for electric seems outrageous to me, and maybe you could find a rental that would include your utilities. Also, look into different insurance for your vehicles. $350 a month for 2 vehicles also seems rather high. We insure 3 vehicles and our camper for $120 a month. It never hurts to check! Good luck to you!

[foxxyroxie]

First of all... my first question is why should you have to pay for repairs? If you pay your rent upkeep and maintenance of the property is the landlord's responsibility. It's not like you caused the roof to leak. A mold build up can cause serious health problems so you either need to address the leaky roof issue and fast or consider moving to another rental. As far as 'being fair' for the landlord to repair things, I wouldn't unless you know for sure that they are due to the negligence of one of your family members, but if they're not going to rent the place out anymore when you leave, why even worry about cosmetic repairs, just repairs that affect safety and sanitation issues.

The only budget cut I see is in lunches. Homemade lunches will be cheaper than you're paying now, plus they get to have more say in what they eat for lunch.

[Holly]

I see lunches and if its that tight I would forgo Camp for the kids this year.
Also cable and maybe still tithe but not as much til you get in another place.
That would be my top priority if I was you because if your walls are soaked and your electric bill has
skyrocketed
you have a short in the electric somewhere. ( very dangerous ) Water and electricity do not mix well
Not trying to scare you but I have been there and its not good. ( that exact problem )
I had to move in with my brother for 6 months until I could get another trailer.
Find something else to rent as fast as possible is my advice then save to buy your home.....

[i.m.cheap]

I think something is seriously wrong with a $500 a month electric bill. Ours is never over $150, even in the hottest summer months, and I use my electric dryer and dishwasher daily.

I don't know what advise to give on the budget, but I do agree with another poster that suggested you check around for cheaper car insurance. You might be able to save some money there. I would look for another place to rent, if you are not yet ready to buy. That high electricity bill would force that decision for me.

[Lalapops]

ooh, thank you ladies!

We're looking to buy because our realtor (goes to our church) has looked at what our loan has been approved for, and has shown us some properties that are very well priced, well below our approval amount, and we would rather spend the extra money (besides what we pay for rent now) on our home rather than paying rent to someone else. We have lived in this home for 8 years and love the neighborhood/area. We will like to keep the kids in their schools. We're ready to buy.

The landlords are very nice people, and every little or big thing that has "messed up" they have been quick to fix and fix right. What we see as unfair, is not that they will not fix it, but that the amount of money they would put into it seems ridiculous if we will move out soon anyways and then they'll scrap this place. They are an older, retired couple and they do not want to rent anymore. They do not mind us staying here "forever," but we have been wanting our own home for some time and feel that this is the right way and time to go for it.

I will call the insurance company we have now and others to see to get it lowered. It is high now because we have both vehicles listed as business use (DH's company policy) and the name of the company on the insurance is considered high-risk. They deal with medical and welding gases that are considered flammable,, even though my hubby cannot transport the gases in his own vehicle (company policy) the name alone makes it high-risk. I'll see what other companies say. That is on my to-do list first thing in the AM.

I know that once we move our rent (then motgage) will be more, our electricity will be less. We can definitely do without cable tv for a while and that will not bother anyone here. We have to keep the internet and also our home phone. My hubby uses internet for work purposes and the home phone has the unlimited calling service and with my family living down south it is a must!!! My DH has a cell phone that his job pays for fully and I have a trac fone for emergencies that I add minutes as I need them, but that is like 30.00 every four months or so, and obviously it is not a must.

I can cut back on my gas in the van, and it is probably lower than what I wrote because I do not see myself actually filling the tank three times a month,, and my DH is going to start claiming his mileage more accurately to get more $$ back and his cost for gas will go down by maybe half.

Can I really make lunches for the kids for less than 10.00 a month. I thought that was a good deal, and she doesn't complain one bit of her school lunch. But if I add them both, I am looking at 35.00 a month and then my youngest will start school next year. I'll have to look into lunch ideas, don't I? hehehe

Ive already started paying in the kids' camp, my son has been going for 5 years and my daughter for 2,, this is the last time for my son (age-wise) and it's a family deal that if they do their part (attitude, service to others, verses...) that we will pay the cost for them to go. The church has already cut 100.00 off each child. As I am packing the house, I am putting the unused/"un-needed" stuff in the den and I think I am going to have a yard sale, whatever profits from that will first go to camp.

Right now, I have to go and get a few things ready for when my daughter gets home from school and then we'll be going to church tonight, so I might not get to "talk" to you all until tomorrow morning,, but many thanks already!!!

[Darlene]

Only other thing I see is cutting back on your tithe & offerings. I'm not a religious person but that seems like an awful lot of money to me. Wouldn't "they" understand if you can't give as much now because you are needing to find yourself a healthy place for your family to live?

[staciah]

Only other thing I see is cutting back on your tithe & offerings. I'm not a religious person but that seems like an awful lot of money to me. Wouldn't "they" understand if you can't give as much now because you are needing to find yourself a healthy place for your family to live?

I totally agree with you on this one. The way I see it is you have to care for yourself before you can care for anyone else. 10% of you total month income is alot to go to the church plus you have to pay for camp on top of that
WOW boy it's expensive to pray.