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[quote=Anonymous]so many questions.

Background:

- 3 kids, all in upper grades at ES. 
- HHI ~ 100k in 2013. Will go upto ~ 110k in 2014.
- DH is working at his company from the past 5 years - hot FEDEX delivery guy :D - and I started working last year in April - SW engineer.
- ~ 45k in student loan - paying back close to $300 monthly.
- ~ 10k in credit card debt - paying back ~ $600 monthly. Credit worthiness went down a couple of years ago but we have settled most of our accounts and making on time payments for the rest. Biggest reason for too much debt was DH being laid off multiple times and I was going to school as a FT student with little kids in my toe.
- been renting apartments from the past 12 years. We are completely burned out and are ready to buy a place that we can call our own.
- don't go on vacations because frankly speaking we never had the money to do that.
- Nothing in savings, but we dream big. :D

We are looking for new establishments since we are planning to be locked in for a long period of time. We want something that won't look too old when we will try to sell it in the next 15 years (this might sound stupid, but whatever – tell me it’s stupid and I will listen).  We have a place in mind that's in Chantilly, Loudon County. I work in DC and DH in Herndon. Last week we went to the builders, they ran our info and said that we got pre-approved for a 410k loan at 4.0%. Monthly payment will be ~ 2.5 to 3k depending on whether we are doing USDA or FHA(sp?) loan. This will cover everything: mortgage, interest, all sorts of insurance, HOA fees. They also suggested taking loan out against our 401k to make 3.5% downpayment. This, according to them, will bring down our payment. i.e. ~ 2.5k.

DH is SO in for it. I just can’t really decide. We are completely naïve when it comes to home buying and dealing with sharks – builders, lenders, realtors :D. We have made stupid money mistakes in the past and our luck just does not seem to be in our favor most of the time. Turning to you guys for some expert suggestions:

- Is it wise for us to buy a $400k house/condo? 
- Does the monthly payment sound reasonable/doable? Our take home pay is around 6.5k monthly after all the deductions.
- Taking the loan out on 401k? I am just so clueless.
- Do we get any benefits being the first time home buyers?
- Schools? How bad are Loudon county schools?
- Are there other places where we can get our mortgage pre-approved/approved rather than just relying on the lender that works with builders? Although builder said that they will pay the closing cost if we use their lender. I was just wondering if that was just a bait or a nice sincere offer.
- Any other suggestions/points to be noted?

TIA.
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