Comments on: Buying A House and Maintaining An Emergency Fund

By: Finding Opportunity in Disaster « Young and Frugal

Finding Opportunity in Disaster « Young and Frugal — Thu, 29 May 2008 16:43:39 +0000

[...] wrote last week about how once the builder had my earnest money, I had no negotiating power. This leak allowed me [...]

By: danielb

danielb — Thu, 29 May 2008 11:44:07 +0000

Thanks Ont. Great point! Though I must admit, I financed in a 46″ LCD. It was a promise I made to my wife before we got married, and saving my cash was a much better decision, because as I found out yesterday…I miscalculated a few grand of closing costs so of course my emergency fund isn’t as big as I thought it was!

Holy Crap I’m a homeowner!

By: ontrider

ontrider — Thu, 29 May 2008 04:08:31 +0000

What do you mean there are no lights in the bedrooms? Three thousand and what for those upgraded cabinets!? You mean I actually have to upgrade this underpadding!? $$$$$

Builders get you coming and going… Trying to sneak some extras in the offer is always good, upgrades always seem to be a ripoff, but a lot of the time you have no choice. At least if you decide to get a brand new home again down the road you’ll know most of the tricks.

I tried to get a few strategic upgrades that I couldn’t do myself and then things like floors, counters, basements, furniture… those can be upgraded along the way when the savings are there. I think one of the worst things people do is get the nicest “everything” right off the bat on their first home, when they aren’t really in a position to do so. They end up feeling stretched every mortgage payment just so they can have those nice stainless appliances, 50″ flat screen TV and gleaming new hardwood floors – which kind of goes back to the point… “Does the size of your image equal the size of your debt”

Good luck with your new home!

By: danielb

danielb — Thu, 22 May 2008 15:22:00 +0000

Philip, I actually forgot to include that we still have to get a Fridge AND a Washer/Dryer! However, I planned ahead and differed all of my Christmas Presents from family members until we closed on the house, and my birthday is next week, so guess what I’m getting for late Christmas and Birthday gifts?

Unfortunately it is to easy to include a bunch of stuff in the cost of the loan, this is where builders make a ton of extra dough.

Thanks for stopping by!

By: Philip

Philip — Thu, 22 May 2008 15:03:49 +0000

I understand completely on just having it included in the cost of the loan. I know that it is not best because interest will be paid on it, but I consider some of it to be just part of the house. Fortunatly the house I just purchased had most appliances included in it, almost brand new. Just had to purchase washer/dryer. Now I keep running across all the other things in the house that are adding on expenses. I just put up some wood blinds in one room, and will add more as I budget for them.