I just wanted to make a quick post here to pass on my expertise to the next first-time homebuyer...
1. Be prepared for a range of emotions. The first house you come across probably isn't "The One". Even the first one you think you're going to put an offer on probably isn't "The One" (unless it's a brand spankin' new house). As hard as you try not to get you're hopes up, the experience is so exciting and scary at the same time that if you're a breathing human you're bound to be disappointed when something doesn't work out. That's okay. You're going to have some connection with the properties. But don't be devastated, because there are more houses to come. You will find "The One" and it will be perfect. Take your time.
In our story, I've already shared the first day of major house visiting. The second round was even more exciting because we were THAT much closer. The original plan was to view the house with Aldo's dad and if it passed with him, then we were to make an offer. Well, our visit went from seeing the one to seeing two, then seeing four! Alright, we have "backups", we thought. It's a good thing we planned it this way because as we went through the house for the second time, we started finding smaller things we ignored the first time around - like the bite marks on the stairs from the family dog, the dips in the deck surrounding the pool, evidence of age of the pool, the entire layout of the basement (which I couldn't even remember! You think the house you're planning on moving into, you'd remember...), and the mold growing in it. Yep, that's right. Abuelito found live mold in one of the storage rooms downstairs. So with that, we had to walk away. Who knows how much the mold had spread and the cost to fix the problem? On top of that, mold is not something I want to mess with health-wise. Living in my mom's basement led to worries of mold and it's effects on my kids' asthma. Walking away is a hard, but a wise thing to do.
We went on to the second house. Going in I was bummed and kind of done with the day. This was the second time we found a great place and it fell through. First, foundation issues. Now, mold. What's next? The second house was a ranch house, super plain. No basement. Only 3 bedrooms. Not old at all. A decent size to take care of. An open backyard, and only one neighbor because it sits at the end of the road next to a field. Aldo and his dad were in love. For the right price, this could be it. To me, it felt industrial, almost like a larger apartment.
The third and fourth were in HOA territory, which early on we wanted to avoid. We agreed to look at them because the dues were low and had heard that the restrictions weren't all that bad (ask permission before erecting a shed, two animals per property, etc.). I knew immediately walking into the first HOA that it wasn't the one. You had to go up stairs to get to the kitchen and main floor, the downstairs room was ugly from imitation wood flooring and a country (mom-type) sink. Ugh. AND, the carpets were so spotless and off-white in their color that the owners requested we wear booties for our look through. It felt like the house was too high class for us. I knew that if we moved in, I would be anal about keeping it in the same condition. I want freedom in our house. Freedom to enjoy it and live in it. Here I couldn't do that. The second wasn't too bad, but I just didn't care for the layout. It was also the highest priced. I agree with what my dad said to me later that night, "If you have to pick up extra hours to buy the house, you want to love it so much that you can't stand being away from it." Okay, so that may be a little dramatic, but the thought holds value.
2. Give yourself wiggle room. Ask the what-ifs. What if I lose my job and it's just Aldo paying for it? What if we get pregnant again? What if we decide to get Luke a dog? What if we can't afford to maintain a pool? So with all of those questions, we cracked numbers for worst-case scenario and knew what our "sweet spot" was and what we were watching for. With Aldo's logic, I realized more and more that house #2 from our second visit, was more of a possibility. Probably a good business deal. And that's what home-buying is. It's a business deal. You buy a house to make money, not because you dream of being a home owner. At the right price and when looking at a 5 year plan (Fact: on average people only live in their homes for 5 years), house #2 was looking like a sweeter deal.
3. Understand the process. And understand what you're signing. I took a free class online a while back that ends in a certificate (which some lenders require you to take). It's through United Guaranty and you can find it at - https://www.ugcorp.com/homebuyers/homebuyers-educational-certification-program.html. We also got pre-approved and had a financial advisor break down what our upfront costs would be and what our expected costs would be later. With all that info, plus asking for utility bills from the homes we were looking at, etc. we were able to budget like homeowners. And prepare for the "earnest money" (good faith money that is put toward the payment later = $1000), the inspection and appraisal, down to the loan application fee.
So yesterday, we put an offer on house #2. We have a really good "broker" aka our real estate agent who has explained everything as well. She has worked non-stop at getting comparable home prices, talking with the buyers' agents, and adding in her own advice. She went over the contract that you sign when you are making the first offer. Did you know there's a timeline on when you can have an inspector look at the house, otherwise you waive your rights? Did you know if she is someone else's agent and they are also interested in the same property, she can show them? Did you know that if the seller fails to pay the commission of the agents, it falls on you? Do you know when the contract is void? From what I can tell, since the seller appears to be a "trustee" for someone and knowing that the property has been vacant for a year, something happened with the homeowner (death or moved into a home) and someone else took it over. Now they're selling it. I'm hoping that the person wants nothing to do with it and they're just ready to get rid of it, and give it to us at this initial offer. That would be awesome and a miracle!
Our contract ends today. If it is agreed on then our closing date is set for 11/30/2017. Here's some more things to blow your mind... we have to give 60 days notice to our apartment complex before moving out (that would be Oct. 21) and our lease is up Dec. 31. If all works out, we'd be able to move into the house Dec. 1 and take a month doing so. !!! Now I'm eager! But the key is to remain calm and think clearly. Make smart decisions no matter how eager you are to get into the house.
Sorry, my short post turned into a long one. Thankful for favor! <3
(Oh, and praying for peaceful sleep! I've found myself waking up at 3 o'clock in the morning cracking numbers. #lifeofabudgeter)
