Good evening friends, and Happy 4th!
I’ve been remiss since my debt payoff, because now what am I supposed to talk about? The answer is: so many things!
In February, I got my bonus, and was notified of the sizable raise I’d be getting in July. And because they felt the raise was a long time coming, my bonus was bumped up a bit. After taxes and deductions (a little HSA–I think–and 401k) my bonus was a little less than $100 more than my remaining loan balance. So I’m happy to report I’ve been student debt free for over four months!
Add in a tax return and another windfall, and we were ready to start looking for our “forever home”. We found it in April, and made an offer. Because of the competition for the us, our offer had no sale contingency. This was incredibly stressful, and I don’t necessarily recommend it. Our house was not even on the market yet. So we made that offer on Monday and we were under contract by Wednesday. So we spent that week frantically packing and cleaning our house to get it ready to show. We listed the following Monday, had several offers (that we were lukewarm about), and had an open house that weekend. From the offers after the open house, we picked one and went under contract.
I should add that our house was on the lower end of the market, in what is definitely a sellers’ market. Competition to buy houses is heavy. Our offers varied in purchase price and conditions. The offer we selected was not the highest offer, but it did allow our tenant to stay (and which meant we didn’t need to take extra time to give him the notice we would have needed if they wanted it delivered empty). We also went with a buyer who was making a larger down payment. We had one offer that was for several thousand dollars more, but the loan type and down payment meant that if there was an issue with the appraisal, they probably wouldn’t be able to close (at least not without us dropping the price).
We had an agreed closing date which was two weeks prior to closing on buying the new house. In order to ensure we had help moving, we moved out the majority of our stuff the weekend before. So we basically had a planned homelessness period of three weeks. Closing day comes and goes without a closing–there were delays with their loan. And more delays. And the appraisal came back low. In the end, we closed at 5:00pm on a Thursday, and had to wait until Friday morning to get our proceeds check — which we picked up and drove over to the purchase closing and signed over. Not how I wanted to do things — and if we had known we were going to take almost two extra weeks to close, we wouldn’t have moved out as soon — but it got done. So now I type this at the kitchen island of our beautiful new house.
That’s not everything though. Since we’d moved, I’d driven my trusty car a couple of times. I started to notice sounds and shakes that I was really uncomfortable with, especially with another baby on the way. I didn’t want to be car shopping with a newborn or wait until bonus time next year. And I’ll be honest: a not-so-smooth ride when you’re heavily pregnant is really unpleasant. We had picked out the car we wanted about a year ago, but decided now was the time to pull the trigger. So I replaced my car less than a month after closing on the new house. Now I have payments on top of payments on top of payments. But, hey! But none of them are student loans!
So yeah, after four months being consumer-debt free, I’m now back into debt and with a much higher mortgage. But I have no regrets, and recognize that the reason why I worked for years to pay off my old debt was so that I could be in a position to buy this house (and car, to a lesser degree). I expect to coast for the next couple of months as we get used to our new expenses, then I’ll get a bit of a break while I’m on maternity leave, which should pretty much close out the year. I’m sure I’ll have some ambitious savings goals for 2019.
That’s the lengthy update!