Tuesday, September 23, 2014

Ordered Another Valuation

I asked the bank to order a valuation on another house. This one is going to cost more than the previous one that we didn't end up buying. But there will be very little work needed to be done if we buy it, so we can afford to pay more. I think the house is a little on the large size, but Snork Maiden disagrees. It's in a different neighborhood a few kilometers further from the center (near this other one we bidded on last year). Despite finding that valuations aren't much use, I think this time we can use it as a basis for talking to the bank guy about raising the maximum amount we can borrow. I am now thinking to put 20% down (up from previously thinking 10%) after rerunning the numbers on a larger downpayment versus paying mortgage insurance, which you have to pay if you put down less than 10%. So, I am also ramping up the size of the Moominhouse buying fund. It's currently at $182k with a target of $250k (up from $150k).

P.S. 4pm

The valuation came in at $950k with a range of $920-$980k. We had guessed about $1 million. Anyway, so now we are going to discuss with the bank how much we can really borrow.

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