Home sweet home is a hassle well worth it

After years of renting a tiny place on the hill just to be near water, Jack and Jill are ready to look for their dream home.
Not certain which way to turn first or how much of a mortgage they could afford, they asked friends who suggested they go to the U.S. Department of Housing and Urban Development online at www

.hud.gov/buying and use the free mortgage

calculator.
Jack found out a general rule of thumb is to budget no more than 29 percent of their gross income for all housing expenses (mortgage payment principal and interest, property taxes, homeowners insurance, homeowner association fees, routine maintenance and any other monthly costs of home ownership).
Their next step would be to get pre-approved for a mortgage. Since they both have been employed for more than three years and have steady sources of income, they were pleased to find they had built a solid credit history. They paid their bills on time and paid off credit card debt.
When they learned their credit score was very high, Jack and Jill knew they could obtain a lower interest rate than their friends Fred and Wilma in the valley. The monthly payment for a mortgage of $250,000 would be about $1,131 a month compared to the $1,364 their friends said they pay. Jack and Jill celebrated over dinner when they learned their years of frugal living in the tiny place on the hill had paid off for them. They learned that over the next 30 years their friends would pay almost $84,000 more in interest payments.
Once pre-approved for their loan, Jack and Jill renewed their search. They located a delightful area with access to shopping and great schools.
The builder advertised home prices as $175,000 and up. They soon learned the advertised prices were for a basic home. One with upgrades as seen in the model was substantially higher.
After some compromises, Jack and Jill decide on a floor plan and finishing touches. They wanted to be in their new home in 90 days. After 120 days, they were still in that tiny apartment! Their dream home was turning into a nightmare. Jack and Jill were learning a lot about buying a new home. They agreed to make the purchase contingent on a home inspection.

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Source www.shreveporttimes.com/