Hey, Joe!
Sorry for the Long Silence.
Back in early April, my wife & I realized we were wrong about something: We could afford to buy a new house.
This came as a shock to us.
Ever since the Financial Implosion of 2002, we’ve figured we were quite stuck in the small house we bought in 1997 (our first house). With the birth of our second child in late 2001, we had outgrown the house (it has less than 1000 sq. ft.), but couldn’t afford to move. Even in early 2007, after a brief review of our finances, we had decided that we were going to be living there (cramped, stacked and stepping over each other) until probably 2009–at the earliest.
But then in March, out of the blue, we realized that we were still looking at our financial situation through the habits and attitudes created by bouncing off the financial bottom. And we didn’t have to look at them that way any more.
We weren’t all of a sudden rich. (And we still aren’t.)
We didn’t have a lot of money explode in our savings account. (And we have less now. <sigh>)
What changed was purely in how we looked at our situation.
Suddenly we were able to see:
- We could afford to buy a new house, using our accumulated savings and what we put into savings each month.
- We could afford to buy the new house before selling the old house (within limits), and stay current on both mortgages.
- And, finally, when we sold the old house we realized we could make enough to pay off the house plus 100% of our remaining credit card debt.
#1 & #2 are a direct result of the aggressive savings plan we instituted a few years ago, as we (finally) started to recover financially. #2 was necessary for a variety of reasons that I won’t go into. That put a limit on the maximum mortgage the bank would give us for the new house, of course, but also forced us to stay within a reasonable budget, instead of buying the absolute maximum house we could afford (and would likely regret later).
And #3 comes from getting a 15-year mortgage when we bought the house in 1997. That decision 10 years ago has alternated between Good Idea! and Ouch! Damnit that Hurts!, depending on the year. It looks like it will end on a good note, though, since 10 years into a 15 year mortgage means we have a lot of equity to play with. (For this house, though, I took the easy way/learned my lesson and just got a 30-year mortgage.)
Thinking about it even now, it amazes me that we can not only get a bigger, better house but also improve our financial situation. And nothing changed, except us.
So, anyway, once we realized we could buy a new house, we proceeded to do it. And that’s what I’ve been focusing on for nearly 2 months now. We started looking at houses, called the bank to start the approval process for the mortgage, and prepared for a long summer of looking at houses.
It took us less than 3 weeks.
We found the house we wanted on 19 April, put in an offer on 20 April, and closed on 18 May. We moved in over Memorial Day weekend.
Things are finally getting back to normal. There are still boxes stacked in the garage and pushed into corners of various rooms, but that’s likely to be the case for a while yet.

And we still need to sell the other house. But we had our housewarming party this past weekend, so I guess it’s OK if we call this “Home” now.
Until later,
-David
By request, a couple pics of the new house: