I’m a little nervous sharing this online since it’s so private but it’s 10:41 p.m. and I must publish a post before midnight to keep my “daily blog” streak alive (I’m on Day 153!).
So here we go…
My wife and have been shopping for our first home. We’ve been married for 8 years and have always rented, but now we have 3 kids and we’re ready to buy.
We got approved for a USDA loan up to $275,000. And a FHA loan for up to $350,000.
The USDA is one of those “Zero Down” loans so all we would have to pay would be closing costs. So that was appealing. The FHA requires 3.5% down ($12,250) plus closing costs (about $7,000).
So we first tried to find something for $275k or less.
But it’s a crazy seller’s market right now and there’s not a lot to choose from. We made one offer on a $250k home which turned into a bidding war. It eventually went for over $275k I heard.
And then last week my wife found this house for sale on Craigslist. It wasn’t listed on Zillow yet and my wife said I should call the guy. So I did (emailed him actually).
I arranged for my wife to look at it first since she was in town that day. She loved it and then had me go look at it the next day. I went there and fell in love too!
I thought, This is the home I would want to live in! It’s on one acre and it’s only 10 minutes outside of Battle Ground.
There’s a beautiful garden, a nice 10×20 outbuilding I could use for my office and it has a hot tub right outside the master bedroom. I could imagine my wife and I soaking in it looking at the stars after the kids went to bed (btw, in my dreams it doesn’t rain at night in Washington!).
The only problem?
It was $349,900. The very top of our budget!
Basically it would be about $2,200/month which was about $400 more than some of the lower priced homes we were considering.
But we loved it! And I knew we could make it work.
Now let me stop right there.
I realize it’s easy to let emotions get the best of you and to end up “over your head” sometimes. And that’s not what I wanted. I really did believe we could make it work because of the growth of our business.
As business owners we have a lot of control over our monthly income. It’s one of the advantages of owning a business vs. working for someone else. It’s good but also scary.
My wife was nervous. So I told her that if she didn’t want to do it then we won’t. But I also told her I was confident we’d be able to afford the higher monthly payment.
So on Saturday (3 nights ago) we signed the sales agreement with the sellers!
We put down $3,500 in earnest money and then we’ll pay the downpayment and closing costs at closing, which is 30–40 days from now.
We have some money in savings but I told my wife my goal is to come up with all the money before closing so we don’t have to touch any of our savings.
That’s tough because that’s $14,350 (the sellers are covering $4,900 in closing costs) we would need to come up with in addition to the amount we pay ourselves every 2 weeks from the business.
It’s challenging but also exciting! I feel like I need goals that have a little bit of pressure associated with them to really get me going. 🙂
So yesterday morning during my quiet time before work I prayed that some sales would come in quickly this week so that my wife would feel relieved about the home purchase. I prayed and believed good thing would happen this week. And then I got to work! I doubled down and did the things I needed to do.
And guess what happened?
Later that day I closed a $2,900 retainer client (a deal I was working on for over 2 months).
And then today I closed a $20,880 deal (a deal I was working on for over a month)!
So $23,780 in sales came in within 36 hours of praying that prayer.
I think that’s noteworthy. It is for me anyway.
So again, I feel a little awkward being so transparent about money here but I think it’s important to pull back the curtain and share honest stories like this with you.
(By the way, I should point out that the $23,780 is revenue, not profit. I have a good profit margin and one day maybe I’ll get brave enough to share that too but just want to be real and let you know I don’t get to “keep” all that money.)
So anyway, it was just a great lesson for me to remember that it’s ok to stretch yourself a little and give yourself motivation to reach to the next level.
And I’m also reminded that in order to achieve your goals you need both faith and works. You need to practice diligence and you need to believe.
It’s not one or the other, it’s both.
So there you go. I’m feeling good about the direction things are going. I want to keep it up because closing will be here before we know it and I would love it if we didn’t have to touch our savings! 🙂