I have a house headache

OK... so here is the story on the house hunting. We currently have a counter offer from a house that is located off of 25A. It has a Sidney address but is still very close to Piqua. It was not our first choice but as I wrote before we were outbided on our first choice. However this house make a nice second choice.

Well, Scott has been trying to get some more details on our financing. The last we heard a few weeks ago was that our mortgage guy could get us a price that we could afford, but we never received a good faith estimate and he could not give us the exact interest rate on the loan. But anyway, our mortgage guy told us to go ahead and get with a realtor and find a house that we like. So that is what we did. Now that we have an offer in on a house and have received a counter offer, we were feeling that we really needed to know the details of the loan. So Scott called our mortgage guy again.

I should tell you now, that we have had a little bit of trouble with financing because we cannot use the money that my mom gives us as income, without putting her name on the deed and we did not want to do that. So even though we have more money we can only go off of what Scott and I make. This makes our debt to income ratio very high. So many places have wanted to give us higher interest rates, which Scott and I have refused to accept.

So our mortgage guy had come up with this income verification loan which was supposed to help us out because we could use our bank accounts to verify our income instead of our pay stubs. So you can imagine our reaction when the mortgage guy called us back finally and told us that the interest rate was going to be 10%. We told him that we would not do it. Well, he thought he could find us something better, so he went back to work. He called us back the next day with a loan for 6.5% interest, much better.

So after all of this I call our realtor to discuss a counter offer on this house off of 25A. We discuss the circumstances a little and then she says, "well, I have another monkey wrench to throw into the mix, I receuved a phone call from the realtor from the first house (our first choice) and the contract has fallen through." (Are you kidding me...........???)

So now we have a very hard decision to make. Do we counter the offer we have now or reject and try again for the first house? The first house has a better location, more land and more outbuildings, but the house is smaller and needs alot more work. The second house is further from our jobs and school but the land has some rolling hills on it and really only needs some cosmetic work. My mom prefers the first house and Scott is leaning towards the second house. I am torn and dont know what to do. As far as payment they will probably work out about the same.

Now do you see why I have a house headache. So for now, I am praying that God will make it apparent which house we should bid on and I pray that we all agree that it is the correct choice. If either house works out, I am never moving again, this is just too much!!