News from a new Homeowner

So, closing happened, and now I'm a homeowner. It was great, I showed up at the lawyer's like I was told at 11am, and they turned me away saying it was scheduled for noon. I drove all the way back home, when I got a call from my agent telling me to come back. After getting back, I waited around for another 15 minutes, making it almost noon . . . Then I signed a bunch of paperwork, and went about my day.
Over the weekend I spent over $1,000 on a couple pieces of furniture and blinds for ALL the windows. I bought a new refrigerator for about $1,500 and a new bed for around $2,000. All of this is on credit . . . Gonna keep my expenses as low as I can so I can pay off that debt as quickly as possible. The bed is to be delivered today, the fridge tomorrow. Luckily, most of that was financed with zero interest if paid in by the deadline. I think I might start putting in some extra overtime once I'm done moving to get that debt paid down faster.
I'm going to be moving slowly over the next couple weeks, a carload at a time. We'll be spending a lot of time there over the weekends doing some general work on the place (installed a mailbox yesterday, need to clean the roof and gutters, install the blinds, etc).

Oopsie! Update time.

So it's Monday, and I didn't get a chance to give you guys an update on Friday. Here comes one!

It looks like my lender is trying to move the closing date up to April 30th, according to her, it'll save me money, although I think it's more about their quotas and such.
I was asked for more documentation from the underwriter on the mortgage, and I was able to supply that yesterday.
My Credit Sesame has gone up to 771!
But my Credit Karma score is still at 766.
Not exactly sure how I came up with all those numbers last week, but I'm still looking good for the money for closing and down payment.
It appears I totally dropped the ball on my monthly overview of spending, I'll try to get that done tomorrow. Work has been very busy (and I've been working a ton of overtime to get more money) so I haven't had as much time to write as normal.

So very stressed

So, yesterday I started dealing with the mortgage paperwork. I read through all the documents on Sunday after I finally got them. Then as I was going back over them while I signed them, something seemed off. Looking at the numbers given by the bank, the money due up front from me was insanely huge. Like double the max money I had available to spend. So I tried to get a better idea from the lender about it, and turns out she completely flubbed the numbers. Left off $1,000 of the earnest money and put in the wrong information for a number of other areas. Now, the number is in a more appropriate place where I can handle it.
Even so, those wrong numbers caused me an enormous amount of undue stress. This whole thing is really throwing me for a loop. Luckily I've only got about a month of all this, then it'll become a different kind of stress.
I'm really worried about screwing something up, or something going totally wrong and me being out all the money I've put in and owing even more cause of something that could have been avoided.
On top of that, today is the inspection of the home. I'm going to try to put together a video of the home, like a walkthrough and introduction to the premises. Also, because I'm so worried about money and being ready to put money down on the house, I'm going to be working all weekend for overtime. I might actually just end up working everyday this month if I can. It's gonna suck, but in the end I think it will be worth it. Luckily I have 3 paychecks till the closing date, so I'll be able to sock away some money.
I'm just going to have to live off credit cards for the next month and spend as little actual money as I possibly can. I'll probably have to raid my Dragoncon savings for this year to make sure I have enough money at the end.

Mortgage win

Alright, after spending the last day collecting what was asked for, I was finally able to get it all to the lender. 38 pages in total, and that was short a page or two because I still haven't gotten the written quote for insurance yet. Luckily, the lender seemed to be ok with that, just knowing the insurer was enough to get the ball rolling.
Next step is she will be sending me back the mortgage packet, paperwork I need to look over, so I can read it over the weekend. I'm seriously stressing over all of this, but at the same time I think that's helping keep me on the ball. I'm usually a really big procrastinator, but if I put things off too much it'll end up costing me, so instead I'm getting everything done as quickly as I can to make sure there's wiggle room in case something bad happens.

Homeowner's Insurance

So, I got an e-mail with a list of all the stuff that the lender wanted as part of the mortgage process. It didn't take me long to get it all together, it's been less than 24 hours and I have everything, except one. Quote for homeowner's insurance, and it's a dog.
The Road so far:
I contacted Progressive, I have my car insurance through them. They were unable to help me, because the age of the house, I needed to know how long ago the major systems (heating, roof, electrical) were replaced, and I don't know. They sent me to one affiliate, but they couldn't insure me because the value of the house didn't match the market rate or something like that.
I also tried contacting Allstate, but they won't quote me homeowner's insurance without also quoting me for auto. I decided to put that off, because I don't want them to possibly ding my credit by running it more than it needs to be.
My next call is to a State Farm agent. I've been somewhat reticent to call them because of a bad experience with them in the past, but if they're able to give me what I need, history won't be enough to stop me from using them.
The real problem is homeowner's insurance isn't something you can get a quick and easy quote on the internet and I have to talk to a real live person to get a good quote fast. And it's still a little early and a lot of the nearby offices aren't even open yet.
I'll continue calling around and will update you on any new developments as they occur.

Now what?

Contract is sign, so what's next? Well, I have to talk to my lender, get the mortgage going. I need to get the home inspected. One article even says I should contact the municipality to find out more about the home. So, today during lunch I will need to call my bank and talk to the mortgage guy. I sent him an e-mail last night, but have not yet gotten a response, so I need to find out the next steps there.
I also need to do some research about home inspections. Find out what I should do to make sure I have gotten a proper and thorough inspection, and questions to ask ahead of time to know the inspector will do what needs to be done. Then after work contact some people to get it scheduled.
Then maybe tomorrow I should see about contacting Lilburn (I'm guessing that would be the "municipality" I need to contact) about the property. Of course, I'm going off the suggestions of a blog I found from a couple years ago.
I also need to contact my insurance company and get homeowner's insurance. Luckily, I can do that anytime of day. I plan on continuing to use Progressive, since they do my car insurance already and should have reasonable costs.
I have e-mailed my agent to find out more about scheduling with her about getting the inspection done, can't get in without help.
I will also need to worry about utilities, but I have time before that has to be done. Luckily I don't plan on moving in immediately, but I do need the house to be somewhat livable right away. This is going to be an ordeal, that's for sure.
A couple more links that might be helpful:
Finishing Details
Post-contract Pitfalls
After the Contract is Signed

Good news getting better!

Heard from the agent today and it's on. I have to run by the bank to get another cashier's check, and then deliver it to the agent, sign some papers, and then do all the rest of the stuff that comes with being under contract. Technically, I'm not yet in escrow, but tomorrow I think I will be!
I'm pretty sure the next steps are going to be to deal with the mortgage paperwork and schedule a home inspection. Hope to get that done by the end of the week, but gotta figure out what's involved and all that.
Other than that, I think everything is going according to plan. I'm still kind of nervous about this whole thing, but I know it's the right thing for me. I honestly can't wait to get on with the moving process, because that is going to take a while.

Weekly update

Sorry this is a little late, things were busy and hectic at work.
Spent my FSA money, just in time too! Got new glasses for my son.
I am now in the offer/counter-offer stage of the home buying process! Should know in a day or two if we're moving ahead on this.
My Credit Sesame score is still 762.
My Credit Karma score is also still 766.
I got a piece of mail from my mortgage lender and it said my Transunion score was 744

The check is ready

Just spoke to the 'rents and the check is ready. I will be going by there after work really quick to pick it up and then run it over to the agent and all will be good with the world.
She did say she verified that the offer was presented to the bank this morning and we should know by tomorrow (if not today). After this, we have 30 days to get everything done and taken care of, so it'll be a rush to the finish, and god, this is stressing me out a bit.
I knew this was big, and I recently came to realize how big it is, but it just seems even bigger than ever! I am really excited though, finally a house I'll be able to call my own.

We have an offer!

So, after a little deliberation and some work, I came to the decision to put in an offer on the house on Casco! The house is in great shape inside, with a lot of room for the things I need, as well as some great space for holding get-togethers. The landscape will need some work, there are a large number of trees that I will want removed and a little remodeling I can see wanting, but in all, the house is perfect for me.
The house is a 3 bedroom 2 bath with brick on all sides. One part appears to be an addition that is actually hardy-plank. New carpets, cabinets, kitchen, appliances, and other stuff. There is a large fireside family room that is just awesome. There is a finished basement with a lot of unfinished space for storage.
I had my agent put in an offer, but one thing no one happened to mention to me is that I needed to be able to get a check in the hands of the seller for earnest right away, and all the money I have for the house is in a savings account. Because of that it will take days to get the money anywhere I can get a check. Luckily my parents were willing to front me money while I do this.
After work I have to run to my parent's to pick up the check and then back out to the realtor to pass it along. Don't know if my offer was accepted yet, but having the money at the ready is important for this, and any future endeavor if this offer doesn't go through.

Long weekend ahead

We got news!
Oh my god, I really MUST spend the money in my FSA, I'm running out of time.
I totally forgot to do another monthly review! Look forward to February's review next week.
I now have $3,829.17 in savings for down payment and closing costs.
My Credit Sesame score has not updated yet and is still at 754.
Also my Credit Karma score hasn't changed from 766.
I finally submitted my mortgage application and was approved for up to $130,000 but requested the letter state $100,000.
I spoke to a real estate agent, and have an appointment tomorrow to meet her.

Finding a Realtor

With the good news about the loan pre-approval it's time to find a real estate agent. Realtor? Realty agent? Real estate agent? I don't know. So I did some asking around, and you know what I found?
Every single person I talked to found their agent through a friend. They were either friends, friends of friends, relatives, or recommended by others. It seems that realty is a social job, everyone has a recommendation or knows someone. Asking the question about how people found their real estate agent got me so many recommendations and responses.
Now, my step-father used to buy and sell real estate when he lived in California, and he's given me some tips and suggestions. He says he's got a guy who is ready and willing to help me out.
My coworker just moved into a new house within the past couple months, and he's got an agent that he absolutely loved and suggested I get ahold of her. She did a great job of finding them a house and goes above and beyond for her clients.
My brother used a friend's mother who was a real estate agent. A close friend used his aunt. Another friend's was recommended by their parents. The list goes on. . .
But with all these recommendations from people, how do you choose which agent to go with?
Really the only answer is to talk to them, each and every one, until you find one that really seems to fit your needs. Know what you're looking for in a house, what area you want to move to, what price range you want to spend. Interview them, ask them questions, find out what sets them apart from others. Don't just settle, purchasing a house it a big decision, and every part leading up to the purchase is just as important as which house you buy.
So what am I going to do? I'm going to contact each of the real estate agents I have been suggested.

And the verdict is . . .

So, as I was stepping out to lunch, my phone rang from a number I didn't know. It was Tom calling me about the mortgage. He had a chance to look it over and found everything to be in order, and I was approved for up to a $130,000 mortgage. He told me that my credit score was good, I guess they run it against all three bureaus, and they were 701, 745 and 790. Averaged at about 742 (I do so wish it were just a bit higher), so that was great.
He asked me about what amount I was actually looking to spend, because as it turns out if my approval is for too much higher than the amount of the house I wanted it would give me less bargaining power. So I told him $100,000 was the max I was considering spending (at least for now, until I actually start looking around at houses). So he told me he'd be firing a pre-approval letter off to me shortly.
With all this in mind, I'm thinking to myself "This is really happening." I know I was going through all this stuff leading up to where I am (and to where I'm going), but until now there really was nothing, I was planning ahead, doing stuff to prepare, but now the search actually begins.
I did hear back from the credit union, but their response left a little to be desired, so I'm going to see about calling them instead. It does seem like I really don't have to though, as I'll have a letter, and I'm certain the credit union would have the same requirements, so I might wait a bit before getting back in touch with them.
The approval is valid for only 60 days, which is unfortunate, but the timing might work out well, since if I start the process of actually buying a house near the end of the period, I'll be right in line with when I was hoping to move.
Tom did say that he couldn't give me an actual rate on the loan, but that I could expect around 4% on a 30 year fixed.
Next step, find a realtor. . . .

The Saga Continues

I have done it! I submitted the first mortgage pre-qualification form. The evil form, the one that badly designed. I did find a way around having to fill it out by hand, and I didn't have to reformat the whole thing either, so that's good.
I did find a couple of the things they asked odd. Like wanting account numbers for where my money resides and such. But I figure they need to be able to contact the other bank and verify that what I'm saying is accurate.
Filling in that form made me look at some stuff I hadn't thought a lot about. I did not realize that I have over $25,000 in retirement savings, and that my car, even though it's a couple years old, is still holding its value really well.
So I filled out the form, printed, signed it, scanned it and then e-mailed it to the loan officer. Almost immediately I got a reply too! I was surprised to get a response so quickly, I'm assuming they're not getting a lot of mortgage applications lately.
After all that, I sent out an e-mail to my credit union in the hopes to get this process started with them as well. I'm hoping that they'll be able to make me a better deal than the bank, but we'll just have to wait and see.
So, there you have it, this dreaded thing of filling out the paperwork and getting the process going in earnest has boiled down to me worrying for nothing. I really don't know why I kept putting this off, but the idea just filled me with a bit of dread.

The worst form ever

So, I got a form from the bank that sent me the flyer about a deal for mortgage pre-qualification, and boy do they want to know a lot. I really don't mind filling out forms, but this one is dumb. As an IT guy, it bothers me when someone wants something filled out and goes about it the wrong way. Why would I want to get a word document that I have to fill out by hand, then mail, fax, or scan back to the sender instead of one I can fill out and just send back electronically?
The lines to fill in are just underscores, so typing displaces the lines and totally messes up the document. What does that mean? I MUST fill it out by hand or go through an ordeal trying to fix the document after filling it all in. You would think that one of the big banks would be kind enough to invest in a pdf document that could be filled in and submitted, but unfortunately, no.
So, what do you think I should do, fill it out by hand and fax it back in? Scan it back? Fill it electronically? Or just ignore the bank altogether? I was told by a friend that I should limit the number of banks I apply to, so I don't have to go with this bank. But I was planning on it, in the hopes that they keep this deal going long enough for me to take advantage of it.

One more Friday

So here we are again, time to look at where I stand in relation to where I'm going.
I've still not touched that FSA and really need to get something done with the $358 in there.
I now have $3,754.17 in savings for down payment and closing costs.
My Credit Sesame score has gone down, it is now at 754. I don't know exactly why, but it might have to do with the recent credit card I started a couple months ago. I'm not sure exactly how quickly things like that affect the score, but of the things they list that may affect it. I'm still over 740, which is good. I also had a decent amount of debt on one credit card, which may have also decreased my score, but that has been paid down decently by now.
I just signed up for a new service Credit Karma, and my score listed there is 766 which is great! This score seems similar to the Credit Sesame score, and I think it is pretty close to an official credit score.
I spoke to my first lender yesterday! I haven't filled out any paperwork yet, because I'm waiting to hear back from my friend about how I should do this, but I'm at least on my way!

When to look for a loan

So, I've got the money from my tax refund now, which means the next step in buying a house is going to be getting a loan. Technically, it's getting pre-approved for a mortgage. I know that mortgage pre-approvals have a expiry date, it's not like when you're pre-approved you can wait 3 years to actually buy a house, but what kind of deadline is there?
Well, with a little bit of google-fu, I've found that it can vary, but normally it is good for 3-4 months. With the timeline I have in place, I'm hoping to have a house by the end of May. I could close a bit earlier, so that's not an issue, so even if I were to get pre-approved for only 3 months, I think I'd be ok.
Interestingly enough, I got an e-mail from Credit Sesame linking to an article "When is the right time to apply for a mortgage?" And according to the article the best time to apply is the first week of the month. So for me, I need to talk to a bank NOW or wait till next month, and I don't think I'm prepared to wait that long.
So, with money in the bank, it's time to contact my credit union and see what they can do for me. I'll give you guys updates on the process as I have them!

A week in review

Here's another Friday, and it's time to look at where I stand. This week, I didn't post as much as I would have hoped for a few different reasons that I won't go into here.
I really need to get with the FSA thing and spend that money. I still have that $358 in my FSA from last year.
My refund came through! Because of that I now have a whopping $3,723.54 saved in the house fund.
Credit Sesame still hasn't updated for February yet, so I'm still sitting at 772, but it should give me a new score in a day or two.
I still haven't talked to any lenders yet, but now that I have my refund I'm ready to start. I think in the next week I'll call the guy who sent me that hand-addressed envelope.

Odd happenings

So the strangest thing happened to me over the weekend. I got a hand-addressed envelope in the mail! You may think it's odd that I find that interesting, but really, how often does that happen? I told my friends about it, and they were all like, "Are you sure it wasn't auto-penned?" Nope, this was genuinely hand written.
It was from a bank too, a bank that I have dealings with actually. The bank my car loan is through. Inside this hand-addressed envelope was a printer advertisement for a mortgage special they have going until the end of February. Stapled onto the page was a business card from a local banker with them, and the (I'm assuming) national phone number that was printed on the sheet was blacked out.
Now, the deal actually seems really promising, something I'd be very willing to consider. The only real problem is, it has a deadline that comes before I'm going to be ready to actually buy a house. I'm sure there are some strings attached that they don't disclose on the form, or some other downside I didn't see (This is one of those larger national banks), but for the most part it seemed like a good deal.
The deal is actually so good, I've almost considered contacting the guy, just to see if they would be able to extend it till my deadline.
But what I find most interesting about this whole thing is, why did this guy feel like it was worth his time to hand-address an envelope to mail it to me? Is it possible he googled me and found this site and decided I might be a good candidate for a mortgage? Or is it just one of those random things where there is no meaning?
If I do decide to contact him about the deal, I'm going to ask. . . .

That's not good news . . .

So, I have this friend who works at a bank. I figured she'd make a great resource with the process, working in a financial institution and having gone through the process herself. So I gave her the rundown on where I was and how far along in the process I am.
So far I seemed to be right on the money, trying the credit union first for the mortgage, what kinda things will be required of me to qualify, the type of loan I'd need, stuff like that. But then there's the bad news. I'd need more like $6,000 and not the ~$3,000 I have. Closing costs increase the amount of money you need up-front to buy a house.
So here I am with cash to put down on a house, but not enough to pay those damned closing costs. Whatever shall I do? Well, I can try to find more money, but that might be tough. When it comes time to close, I'll have a little more money, but not enough to cover that wide a gap.
Can I just pay the closing costs and not put any money down? I'd heard of people doing that before, but that's part of what's caused the economy to go down the toilet, so you can't do that anymore.
How about rolling the closing costs into the loan? Not exactly. I can't do it myself, but if the seller were to pay the closing costs, then add that onto the sale price of the house, which will in turn roll it into the mortgage.
So it's not great news. Although I kinda expected something like this, I still feel confident that I'll make it through the process. And with this being a buyer's market, I'm certain I'll find a seller willing to work with me to get the house of of their hands and into mine!