Friday, July 29, 2011

ready, set, goal

It still seems unreal how things are unfolding in my life. It was only last week I was wondering if buying a house was even an option for me and now I'm super excited to say IT IS! Just Tuesday a friend recommended a real estate agent, who then referred me to a broker who worked his magic. I almost fell off my seat when he told me I was pre-qualified for a 100k.  I know it's not much, but it's all I need for what I'm looking for.  I'm not looking for a family home, just a 2 bedroom with all the modern features. and it's more then I thought I would qualify for.  I  don't much a year, especially working for a non-profit then tack on my student loans and credit card debt and I thought for sure I wouldn't be able to qualify for anything especially on my own. Luckily, I've been paying down my debt, which in turn has been creating a better credit report/score (now 666), which has definitely been a huge benefit. God knows your path even when you don't. I would never have qualified if I hadn't paid off as I did this last year.

The broker gave me 2 requirements before I can actually buy a home.
1) pay down all my credit cards to $0 and DO NOT close them.
2) have 3% in cash, whether by gift or savings

After paying a few bills and zeroing out 2 credit cards with my tax return I still had some left over, which I decided to use as a buffer, since my evening job wasn't producing any hours.  When we began searching for an apartment I knew it would come in handy for a security deposit.  Then when my mom and I started talking about buying she felt it would be best used for part of the down payment.  I had in mind what I wanted to do, but wanted to see what my broker felt would be the best way to use my savings.  He advised me to zero out my cards now that way while I'm saving for my down payment my credit report/score can be repairing itself.  He strongly advised me NOT TO CLOSE my cards, as it would hurt my score.  I took his advise and used the $800 I had left over to pay off  my larger and older cards and what I had left over I used to make a payment on my newer ones (see table below).  Once our hours begin up again in August I'll be  working extra hard to raise enough money in the next few months for my down payment and selling a few things to help add up the balance. 

I'm so proud of the progress I've made only in the span of 1 day and it's so beautiful to finally see my lasik balance zero'd out and eliminate the $40 a month I was paying the consolidation company that I can now put in my own pocket.   Here is my current progress and the pay down date I have scheduled.

cardbalancepayment new balancedate of payment
best buy$181.44$181.44 $0 08/01/11
bill me later$120.36 $60 $60.36 07/28/11
TJ Maxx$133.53$0 $133.53-
lasik $715.21$715.21 $0 08/02/11
totals$1150.54$956.65 $193.89

My TJ Maxx card I sadly just got.  I saw a patio set there that I sooo wanted and it would have been perfect for the apartment we were looking at off Trindle, but now that I'm looking at buying I'm most likely going to just return it.  Though depending on how many hours I can get I may just pay if off and keep it.  Still undecided on that one.  I'll try to post a pick soon so you can understand why.

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