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Saturday, March 14, 2009

Home Purchase Update

I locked in my rate at 5.375% last week. Rates had gone up since my broker sent me my GFE (Good Faith Estimate). I then bought down the rate to 4.875% which will cost 1.25 points and the will be paid by the closing costs the seller is contributing.

This may mean an even lower monthly payment. I say may because I won't know until closing if the estimate on the property taxes
were correct or far off.

I also shopped around for quotes on hazard insurance for the house. I spoke to my future neighbor and did some research online about what kind of coverage I should have and how much. I got back 4 quotes that were pretty much identical in terms of amounts of coverage and areas covered and whose premiums ranged from $664 to $776. The only difference was the companys' reputation and ratings. I researched Demotech to find the stability rating for each company. And based off that, customer reviews, and word of mouth I went with the best company which was also the one with the highest quote of $776. I'll pay the extra $112 a year for better service and a more stable company.

I posted my shopping budget for the new house yesterday and left out patio furniture. Its not something I need RIGHT now but if I am able to spend less than the $4K I am aiming at then I will get a set. I saw a lot of good steals on CL.

2 comments:

Ms. No Single Mama Drama said...

Girl, you did the dang thang!

I love CraigsList. I have done the same since purchasing my home September 2007. No furniture in my house has cost me more than $100 bucks! I have bought project pieces that require painting to make it cohesive looking in my home. My best find a beautiful white dresser--one super heavy, real-wood find for only $50 bucks. Everytime I look at it, I'm proud of myself. Also, check out rooms to go outlet (we have one in ATL). I got a $700 dinning room table (no chairs) for only $99 bucks! It had some deep sctatches in it that I used a little wood filler and it's perfect.

Keep us posted, girl!

Sistah Ant said...

Great rate! Good going on buying it down. I'd have done the same, but I couldn't afford to buy the rate down AND keep enough of an emergency fund.