House of Pancakes: 20% & Emergecy Fund

Good Morning Friends….this weekend at our house was filled with lots of vapor rub, runny nose, congested chest, lots of throw up (on both Mr. Pancakes and I) and a little person who was sick but wanted to play like he was completely fine.  That boy is such a boy even when he is sick.  He is doing a little better today which makes us feel 100% better.

And i ran my first 5miles (in a looooooooooooong time) where i actually ran.  5miles in 66 minutes burning 715calories.  I feel like i am finding my rhythm again and it feels wonderful.  Of course the fat could be leaving my body faster but i can’t expect a miracle in three weeks.  Patience is a virtue, which also speaks to a little of what today’s post is all about.

Operation House of Pancakes is in full progress.  I am trying to be patient by not being saddened by the fact that interest rates may go up by the time we are ready to purchase a house.  Instead, we are working diligently to increase our down payment and emergency funds so that we will be in a better position to purchase.

According to Suze Orman, who we enjoy listening to, one should NOT purchase a home until they have at least 20% down payment and an 8-month emergency fund.  Which i feel is a little steep but we are going to strive for this goal as much as possible.  At this rate…it seems like building up a 20% and an 8-month emergency fund is going to take forever BUT we have time on our side to make this happen.

Two years is a looooooong time.  Sometimes…i want to just go for with it with a leap of faith but the more i think about this…the more i realize that we are going to live in this house for the rest of our lives (hopefully) so what’s a few more years.

In the meantime…we are learning all we can about mortgages…brokers, principal and interest, property insurance and so on and so forth.  And of course i have been going crazy watching House Hunters every weekend.  Looking up houses and the type  of house we would like to have.  I have a few more posts coming with style of house and decor inside and outside.  That part of house hunting excites me WAY MORE than the numbers.  I am so not a math person!!!

Question of the Day: What were some of the things you considered prior to purchasing a home?  What kinds of things are you considering before purchasing a home?

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About Mrs. Pancakes

I became Mrs. Pancakes on 4.23.11! I became Mama Pancakes on 8.28.12! And our lives were forever changed! I call myself Mrs. Pancake because my man loves him some good and fluffy pancakes! The Pancake Life chronicles a life that is happy, inspiring, motivating and lived to the fullest! Why don't you stay a while and enjoy in the The Pancake Life!
This entry was posted in Baby Pancakes, Babylogues, House of Pancakes. Bookmark the permalink.

20 Responses to House of Pancakes: 20% & Emergecy Fund

  1. Alma says:

    Oh wow! I hope you all feel better soon. I know what that is like to all be sick at the same time, not fun. Sending some healing energy your way. I dont own a home but I do own an apartment in New York that helps me pay for the rent in this home in Savannah. We have not thought of buying a house yet. Much luck house hunting ! My gift will be coming to you soon in the mail. I am sorry I have taken a bit long in mailing. I absolutely loved your package and especially your note.
    It has been great getting to know you and share gifts this way.
    xoxo

  2. Lashawn says:

    We have done this twice now. The first time we didn’t consider enough! They said we qualified for this much house and that’s what we got. This time we were a lot more picky: commutes to work were considered, the amount of the house, the affordability of the mortgage. And the yard for Pookah. 🙂

  3. Lauren says:

    This is so smart to have a good strong down payment. While I don’t agree with everything Suze has to say…I do agree that having a strong downpayment is so important. It can save you SO much in the long run!

  4. Being patient and not jumping the gun will pay off in the end. We didn’t put any money down. 20% is steep! And we are constantly contributing to savings. It never seems like enough. I live in Cali and it’s expensive here so we went with what location was affordable and that was the main deciding factor.

    • 20% is ridicules depending on the price of the house but I guess it makes it cheaper in the long run. Thanks for the feedback about how you chose your house…I think sometimes all I think of the style of the house and not important things like location!!

  5. Heather says:

    Thanks for sharing this graphic! We are saving up for a house, too, so it’s very helpful. There is definitely a lot to think about and learn about, isn’t there?

  6. JJ says:

    I think you are doing the smart thing. We didn’t do 20% but we did 15% because we wanted to have 3-months in savings. Some mortgage companies will pay off the PMI if you qualify. Just a heads up for when the time comes. Ask about it.
    I highly commend your patience. We did the same thing. Saved for 22 months to be exact. We had a long engagement (16-months) to allow us to save for and pay for our wedding. Then after we got married, we kept ALL of our wedding monies as well as gift cards. The money we got from our wedding helped start out our savings. The gift cards were used to furnish our home when we finally moved. Yes…we sat on them for 2-years but it was well worth it :-).

    • Loved loved your comment…and it’s so hard to be patience sometimes but I love seeing that great things can happen when you are patient!! Thanks for writing this JJ…I needed to read this!!

  7. Kita says:

    Get all the info you can. We were not ready for a house and we got one because others told us why pay rent when you can pay a house not realizing that with mortgages comes more responsibility. You have to pay for things that get broken, the upkeep of a yard, and don’t forget taxes and HOA all that needs to be saved. If we could do it again we would wait until we both were working and making close to or more than 6 figures. Good luck to you

  8. Tamara says:

    I wish we had thought more about it. 8 months of emergency fund? We didn’t even have 8 weeks. It wasn’t the worst decision in the world, but it’s been a struggle.

  9. Mimi says:

    I love Suze but sometimes she can be a bit extreme. We just moved and we only put 5% down on a conventional and we have about a year or expenses saved.

    My opinion and thought is the interest rate is going to kill you in the long run. We decided not to wait to make sure we caught the interest rates while they were still low. We had 4.00 when we started the loan process when we closed it had jumped to 4.25 and so did our payment by $200 for the same priced home!

    I think in the end the payment will even out. If you did it now with a lower interest rate versus waiting and saving all of that money to have a payment that is significantly higher..you do the math!

    Our payment is manageable and we have the house of our dreams. Had we waited the outcome would’ve been very different. So much to consider! Good luck to you all on your journey. I am so glad to be done forever!!!

  10. Quiana says:

    I definitely think it depends on your market. Here in NYC very few people own. and it’s crazy to think my parents owned when they were 10 years younger than I am now but of course circumstances are different in our modern economy (plus they were in Ohio, not quite NYC!). We’re debt haters and I used to be a big Suze Orman fan, but agree more with Dave Ramsey – a HUGE debt hater. Ideally we’d pay cash as he recommends for a home, but we’ll see where we end up permanently. Living well below our means has been a huge help financially, and I know it’ll pay off when our home-buying time comes. Wishing you well with your house hunting and saving!

  11. Pegster says:

    I love the idea of saving as much as you can and all that. But let’s be realistic, most of us would have to save for forever and a day to get to the point where we can have enough money to buy our dream house.

    I am not scared of debt, I embrace it. Not all debt is bad. It’s easy for people with millions to tell us that we need to save and all that jazz but frankly we wouldn’t be able to afford a lot of stuff if we did that.

    I am a proponent of live within your means and live for today. Who knows what tomorrow is going to bring? We only put 10% down on our house but we got the house that we wanted and wouldn’t mind spending the rest of our lives in. It took us almost 3 years to save for that. I mean we would have had to save for another 3 years just to get 20%. That’s insane.

    Good luck to you on your savings plan, it seems you guys have a great plan going. It’s going to be so nice to finally get your house built and enjoy all the space.