We won't close until next week now. That's okay, though - it's not like we are homeless or staying in a motel or something. We have been living in our RV for 2 years and a few more days won't kill us (I'm pretty sure). We are all paid up here at the RV Park through the end of the month, and our storage is paid through March 11th, so we have plenty of time to close next Tuesday (or Monday if they push it - but the funds have to be here before 10am for that to happen). Everything is there and in place, ready to go, though, and the realtors are paying interest on the short sale loans until we close, so you can bet they are putting pressure on the lenders to get it funded asap!
I guess we are lucky, though - ours is the ONLY short sale in Bishop that has gone through at all - there are several offers in on others (and there are quite a few houses out there that are listed as short sales) and none of the banks have moved on them. I think it's a combination of our realtors and our situation. Our realtors were also the seller's agents for this house, and they worked their butts off, calling the banks every day to bug them about it, and working with them on the terms, being go-between between the first and second mortgage holders until they had a deal. The house was also offered at a reasonable price and our offer was full price. It was appraised at $5,000 above our offer, which is good for us, but also appealing to banks that it wasn't far off the mark.
Even though it's not our dream house, I'm glad we went with this house, for the most part - we can easily afford the payments, and have a little left over for fixing it up. I like the neighborhood more the more I find out about it, and I love how close it is to great walking and biking trails. I should take up fishing, since I could bike out to a great fishing spot pretty easily!
I do have doubts and misgivings, though, because we did settle. I think settling was the smart move, in our situation and with the economy, but I think about the other place for the same price with the view and open land behind it and get a little wistful. Then I remember how it smelled and what a wreck it was, and the mice and filth, and how we'd need to do so much just to move in, and how it was a foreclosure and by buying it, we'd be "helping" to evict the previous owners, and how, based on how neglected and run-down it felt, there were probably a lot more unpleasant surprises (and expenses) waiting to be uncovered.
Still...
It helps to think of this as our "starter home" which of course, it is. We'll learn all about remodeling and home ownership, and when the time is right, maybe we'll find something closer to our dream and sell or rent this one out. We jokingly refer to it as the start of our Bishop "real estate empire"! The idea of having income property is pretty appealing, for sure!
And, then again, maybe we'll end up loving it, and making into our perfect dream home, and never moving.
You know what? Either way, we win! We live "happily ever after," and isn't that the dream, after all?
Friday, February 20, 2009
Thursday, February 19, 2009
Things they don't tell you to do during escrow
As first-time home-buyers, we waited to be told what to do each step of the way, but now that it looks like escrow is not going to close on time, here are some things they didn't tell us that may have made the process go smoother:
Okay, off to make some more phone calls!
- Loan Documents: I had expected them to come through the realtors, since everything else was coming through them, but the mortgage broker mailed them to us and didn't think to ask if we'd received them until after they were due. I was able to get everything back to him the same day, or the next day, after I picked up the package, but we have a UPS Store mail box and don't check it every day, so it had sat there for about a week before he asked about it. I wish he had asked sooner!
- Home Owner's Insurance: I called around, got the best estimate on the phone, then gave the agents name and number to our realtors and/or escrow. I wish I had contacted the insurer directly after that and told him to get started on the policy, but I assumed the escrow people were taking care of that, since I repeatedly asked during the process what else I should be doing and no one said that I should be the one contacting the insurer. I still think that is the way it works normally - that the escrow people contact them, but it happened late and now the insurance may be holding up the process further because there were 2 claims on the house previously that needed to be researched.
- Mortgage Rates: To Lock or Float? We chose to float our interest rate because it seemed like they were going down, but then they went up instead. We ended up losing $1000 on a gamble, basically, because we got the same rate we could have locked in the first day, but we had to pay another 1/2 point to get it. Also, our broker called daily with the rates, but he called at the end of the day. The Lending Tree broker said she would call when they got a notice that the rates were going up or down mid-day as well as at the end of the day. I sort of wish we'd gone with her at this point. One good thing about our loan, though, is that we are able to set up our own account for saving for taxes and insurance instead of having the lender create an impound account. We'll make a little interest on it and be in charge of our own money that way.
- Keys to the Castle: The realtors can't let you have the keys if you want to go over to the house and take measurements or photos or get an estimate - they'll only give the keys to a licensed contractor for those sorts of things, or they'll go out with you. Not a big deal, but there was a mix up with the keys when one contractor sent an assistant to get the keys and they wouldn't let him have them. So, call first to let them know!
- Popcorn ceiling removal
- bathroom remodels
- kitchen remodel
- new doors
- new windows
Okay, off to make some more phone calls!
Wednesday, February 18, 2009
Sliding into home base!
We spent two hours at the Title Company today, signing, and then RE-signing loan documents! After we were almost completely done (the first hour), we found they had listed the sales price incorrectly on one of the documents. But they were able to quickly email corrected documents over almost right away and we quickly re-signed them all.
Also, no one had contacted the insurance guy - I gave his contact info to escrow at the beginning, and was told that's all I needed to do, but when they sent him a request for the insurance amount today, that was the first he'd heard! So the poor guy was working late tonight - sent out a rep to get photos, called me back and was working late to get all the needed info to escrow by tomorrow morning.
The great thing about living in a small town is that we ~can~ do that - the local insurance agent called me and said she could run over and take the photos this afternoon. People can usually make time to accommodate your needs here. And they do it with a smile, too.
We may close tomorrow after all, or at least Friday, which wouldn't be so bad.
Also, it turns out that included in that large cashier's check was the first year's worth of insurance, the first half-year's worth of property taxes, and payment/interest until April 1st, so that's not as bad as it seemed.
Things are looking up!
Also, no one had contacted the insurance guy - I gave his contact info to escrow at the beginning, and was told that's all I needed to do, but when they sent him a request for the insurance amount today, that was the first he'd heard! So the poor guy was working late tonight - sent out a rep to get photos, called me back and was working late to get all the needed info to escrow by tomorrow morning.
The great thing about living in a small town is that we ~can~ do that - the local insurance agent called me and said she could run over and take the photos this afternoon. People can usually make time to accommodate your needs here. And they do it with a smile, too.
We may close tomorrow after all, or at least Friday, which wouldn't be so bad.
Also, it turns out that included in that large cashier's check was the first year's worth of insurance, the first half-year's worth of property taxes, and payment/interest until April 1st, so that's not as bad as it seemed.
Things are looking up!
Trying not to think about it
I just went to the bank and had a huge cashier's check made out to our local title company. Of course, most of it is for the down payment on the house, but the rest, along with the deposit we made earlier, adds up to almost $10,000 in closing costs!!!
Is that normal? I knew it would be high, because it's always higher than people expect, but this was, well, higher than we expected. We are paying $3,000 in points, which we really didn't want to pay, but it will make our monthly payments much better and more likely able to be covered by renters, should the need arise. And we did get some extra inspections, but I don't think they were really all that much - maybe up to $1,000 of the total? So what's the extra $6,000? Lender, Mortgage Broker, Title Company, Escrow Service... I'm really hoping that it also includes our first month's mortgage, tax and insurance payment, then it won't seem quite so bad.
We meet later today to sign all the loan documents and go over all the bills, so I'll know for sure where the money went then.
All of that, and our mortgage interest rate still isn't all that great - with the fed rates being at historical lows - practically zero, you'd think mortgage rates would be lower. Ours is 4.875%. And we had to pay 1.5 points to get that. I wanted it to be under 5% though, and it is, so there's that. Closer to 4% would be even better. Ah, well, we're just doing our part for the economy and to help with the mortgage crisis. We'll enjoy our first-time home buyer's stimulus check next year, but it won't even cover all the closing costs, sadly. It will, however, help pay for a bathroom remodel, so that's okay.
Friday, February 13, 2009
In Escrow
During escrow, the house gets "injected, inspected, detected, infected, neglected, and selected" and possibly rejected!
It did not get rejected, as no pests were detected, it was not infected, nothing horrible was found when inspected, though it does feel slightly neglected, ultimately, it was selected.
"You can get anything you want..."
Okay, enough of Arlo! The house passed inspections with only a few surprises - two, really. The roof was not in as good a shape as it initially appeared, and the sewer line is old and made of paper.
Rob the Roofer (really) said that it would take "an act of god" for the roof to leak, as the roof that is on there now is the second roof and is over another roof. It's 15 years old, though, and has another 5 years before it starts to show its age and wear and tear. The biggest issue with the roof is that the previous roofer neglected to put the metal edging on the roof that keeps the eaves from rotting, and the plywood under the shingles is starting to get soft - just on the edge of the overhang. $875 to add the sheathing to keep it from further deterioration.
Mike the plumber did a video of our sewer line and it is the original "Orangeburg" paper type pipe that is starting to get squashed into an oval and get full of roots. If we snake it every four months it should be fine, but will need to be replaced eventually. Fortunately, the line doesn't go directly under the nice tree in the front yard, and the plumber said the tree should be okay when he replaces the sewer line for $1300.
Other than those two surprises, there is really nothing we didn't already know or suspect was wrong. We had an extremely thorough home inspection - so thorough, we want to use the notebook he gave us as a record of our improvements and fixes, adding to it as we fix up the house.
After all the inspections, we started getting estimates on fixes and upgrades - removing the "popcorn" ceilings, rearranging the kitchen, doors, windows, all sorts of things. We hope to make a pretty good plan so we don't spend all our money on small things and run out before we've accomplished anything major. We plan to prioritize and schedule renovations in a way that is efficient, logical and financially sensible. We'll see what actually happens!
I've done tons of drawings, which help me to visualize how it might look, and Devin has used Visio to create some floorplans, I've used some online software to plan the kitchen, and I've been spending all my time online looking at home-improvement products, websites, videos, and watching HGTV!!
Now, we have less than 1 week until we are home owners!
I mentioned in the previous post that it has been a roller coaster. When I see the house as we imagine it will be, I feel excited; when I see the house as it currently is, empty, a little dingy, mediocre and sad, I feel depressed and wonder if we are doing the right thing. Then I remember that even if we do nothing, when we move in, it will be home - we'll add our personality to it with our things, and it will allow us to get out of the friggin' trailer park! Then it's all OK.
It did not get rejected, as no pests were detected, it was not infected, nothing horrible was found when inspected, though it does feel slightly neglected, ultimately, it was selected.
"You can get anything you want..."
Okay, enough of Arlo! The house passed inspections with only a few surprises - two, really. The roof was not in as good a shape as it initially appeared, and the sewer line is old and made of paper.
Rob the Roofer (really) said that it would take "an act of god" for the roof to leak, as the roof that is on there now is the second roof and is over another roof. It's 15 years old, though, and has another 5 years before it starts to show its age and wear and tear. The biggest issue with the roof is that the previous roofer neglected to put the metal edging on the roof that keeps the eaves from rotting, and the plywood under the shingles is starting to get soft - just on the edge of the overhang. $875 to add the sheathing to keep it from further deterioration.
Mike the plumber did a video of our sewer line and it is the original "Orangeburg" paper type pipe that is starting to get squashed into an oval and get full of roots. If we snake it every four months it should be fine, but will need to be replaced eventually. Fortunately, the line doesn't go directly under the nice tree in the front yard, and the plumber said the tree should be okay when he replaces the sewer line for $1300.
Other than those two surprises, there is really nothing we didn't already know or suspect was wrong. We had an extremely thorough home inspection - so thorough, we want to use the notebook he gave us as a record of our improvements and fixes, adding to it as we fix up the house.
After all the inspections, we started getting estimates on fixes and upgrades - removing the "popcorn" ceilings, rearranging the kitchen, doors, windows, all sorts of things. We hope to make a pretty good plan so we don't spend all our money on small things and run out before we've accomplished anything major. We plan to prioritize and schedule renovations in a way that is efficient, logical and financially sensible. We'll see what actually happens!
I've done tons of drawings, which help me to visualize how it might look, and Devin has used Visio to create some floorplans, I've used some online software to plan the kitchen, and I've been spending all my time online looking at home-improvement products, websites, videos, and watching HGTV!!
Now, we have less than 1 week until we are home owners!
I mentioned in the previous post that it has been a roller coaster. When I see the house as we imagine it will be, I feel excited; when I see the house as it currently is, empty, a little dingy, mediocre and sad, I feel depressed and wonder if we are doing the right thing. Then I remember that even if we do nothing, when we move in, it will be home - we'll add our personality to it with our things, and it will allow us to get out of the friggin' trailer park! Then it's all OK.
The House
Our offer was accepted, and we are now in our last week of escrow! Escrow has been a whirlwind - and a roller coaster.
The house is not our "dream house," but we hope to make it at least a little more dreamy.
Here's a slideshow with captions from our Picasa Web Album of the house, plus some photos of ideas for renovations, and some inspiration from other houses:
As you can see, the house has a lot of potential, which is realtor-speak for "needs renovation."
We have some money saved for renovation, but already have about ten times more projects on our list as we have funds. A few things we really would like to do, not necessarily in this order:
The house is not our "dream house," but we hope to make it at least a little more dreamy.
Here's a slideshow with captions from our Picasa Web Album of the house, plus some photos of ideas for renovations, and some inspiration from other houses:
As you can see, the house has a lot of potential, which is realtor-speak for "needs renovation."
We have some money saved for renovation, but already have about ten times more projects on our list as we have funds. A few things we really would like to do, not necessarily in this order:
- Upgrade kitchen
- Open up kitchen to living room - at least a little more
- Add window or French doors (or both) to living room
- New front door
- New windows (dual pane, low e, etc)
- Wood floors
- Paint
- Get rid of the acoustic ceilings (aka "popcorn" or "cottage cheese")
- Change some lighting fixtures (not too fond of the look of the track lighting, for example)
- Upgrade main bath: new tub, surround (tile, preferably) and add shower and arc shower curtain; new counter and two sinks, paint, flooring
- Upgrade master bath: convert stall shower to wide walk-in glass shower width of room, new vanity/sink/fixtures
- Landscaping
- Get rid of wall around patio
- Add front patio area
- Close off laundry area from garage - create pantry at other end
- Solar hot water
- Plumb propane to kitchen and laundry
- Install Solatubes (tubular skylights) in main bath, hall, and maybe other areas
- Add more insulation (there is only pink batting that is about 4" thick now - add a layer of blown-in)
- Consider adding forced air heating (the kerosene heater in the living room is the only heating for the house currently)
- Add barbecue area to patio with sink and counter/bar
- Add a clothesline in side yard (I love hanging clothes to dry!)
- Plant a garden
- Plant some fruit trees
- Get some chickens
- Get a dog :)
That's all... for now!
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