A Girl...

Tomorrow is our one year Housiversary(!!!) so I am very excited to share what I have learned.

Leah - you were so right with all of your comments. I just want to add:

1) Don't let people intimidate you into not asking questions. Sometimes people (mortgage people, bank people, lawyers) will treat you like an idiot because you don't know how your closing costs are figured, or why you have to pay a certain fee. It is their job to know these things. I'm sure you know lots of things at your job that they wouldn't know, so don't let them bully you into feeling stupid. ASK. Anything and everything that pops into your head.

2) It also helps to be very up-front about your situation. I swear, at some point I started every conversation with, "Hi, I'm Rebecca and we're looking for a house in the XX price range and we have no down payment." It sounds weird, but being very up-front about things kept people from suggesting things that wouldn't work or from asking questions that didn't apply to us.

3) This is pretty much true of everything in life, but it's important to remember in this situation too: KNOW WHAT WORKS FOR YOU. You will get SO much advice and hear so many stories and eventually you will find yourself second guessing everything. "So and so said that the market is going to change and I should wait 3 months." "That neighborhood isn't good for you." "Don't let yourself be house poor." "Get in to the housing market as soon as you can, even if you have to be house poor." It can be maddening. So take it all in, but in the end stick to your guns and do what is right for your situation.

That's all I can think of... Hope it helps!!

Had only made it to point 1 before I felt the need to post this. Everyone can get one free credit report every year by going here: https://www.annualcreditreport.com/cra/index.jsp

Knowledge is power!

Now back to your post.

first off, Congratulations! I am decidedly green with envy. Your house and yard look incredible! Which leads to:
Second---PLEASE do not let that beautiful garden die! I will come weed and help take care of it, just don't let what happened to those flowers in the pots, happen to those happy happy plants in your garden. In return I'd just ask for a glass of champagne on your lanai (and perhaps a dip in the hot tub??)!
Or, just don't document it's decline on your blog. That would cause many tears out here in Leah/Simon fandom.

I'm with srt - PLEASE PLEASE PLEASE don't let that garden die! I'll come help too!

1. Totally agree on the credit score and the pre-approval. We didn't and getting our loan was fun. But it all worked out thankfully. But good credit is really helpful.
2. Fixed interest rate. Really. Don't accept anything else unless you KNOW you can afford the hike in your mortage when it spikes.
3. A good realtor is worth their weight in gold. Make sure it's YOUR realtor and not necessarily that of the sellers. If the realtor is the sellers' realtor, his loyalty is more to the seller and not you.
4. Closing costs can change from the GFE so be prepared just in case.
5. You pay that homeowner's insurance for the first year up front.
6. You can do a lot of house searching on your own. You don't have to rely on that realtor to cough up a list. Make your own and just tell your realtor which ones you want to see. Take notes.

Oh there's so much stuff I didn't know that I know now. But it's still all worth it.

OH and I am sooooo jealous of your new garden. We only have a pear and a lowquat tree for fruit. But we do have a gorgeous Mimosa tree. And a concrete slab!

But I covet your garden.

Your garden will be beautiful and thrive because you care about it enough to learn how to care for it properly and because you will be able to afford no amusements other than puttering around in your garden. I'm only joking about the latter because you said so. Also they look like established plants, so they'll do fine even with a modicum of neglect.

House assvice:
1. don't rush into buying something until you've fallen in lurve with a place
2. have a price range and stick to it
3. find a new realtor if they ignore your stated price range and continue to show you places above that
4. consider your lifestyle when buying - are you a homebody that doesn't like to travel or go out? buy anywhere within your price range. love to travel, buy new clothes and the latest gadgets? buy below the bottom of your price range. the last thing you want to do is resent your new home because you can't afford to travel for a friend's wedding

Thanks for the tips. Would you care to share the name of your realtor? We aren't ready to buy but would like a recommendation from someone who liked theirs, and would like to talk to one anyway just to get a better sense of the whole process. Would you mind emailing me if you don't mind passing the name along? If not, no problem. And/or, how did you find her? Just chance or a recommendation?

Congrats again.

I don't know why I'm being petulant and whiny about your house. Because a) I have no use for one and b) I'm like 14. But I WANT A HOUSE NOW.

Look! Look what you've done to me! I have house envy.

That website is so great. I love that guy. He expains everything in such clear language-it was a lifesaver when I first started working for my employers (I managed to take every property class in ls except RE).

OTOH, I have to let you all know...he is totally legit (prof at Wharton), even though the site actually looks like it was developed by a spammer and should have annoying emoticons at the top.

First, the real estate agent can make or break your sanity. Our second agent really knew what she was doing, and knew to watch for the tricks and mind games from the other direction. We did much better the second time around. Second, having an inspector who points out Everything is actually better, even if you find stuff you don't intend to us in negotiation; we know our house isn't going to fall down, but there are things we'll need to take care of.
We found that saving for a down payment would have sent us back years and, even moving up in house, we made a little money on our second purchase, not to mention the equity we'd already used. If we would have waited, we'd still be renting. We were able to negotiate our closing costs because the house had been on the market a bit, so that rocked.
Overall, I've found that when it's right, it's worked out. I just have a "feeling" about living situations, I guess. We had to shift our thinking about where we wanted to live; we redefined our notion of what is "hip" and what constitutes quality and where progressive attitudes can be found, if that makes sense. Because we were able to step outside of our area's preconceived notions, we purchased a home much nicer than we expected and have found our new neighborhood/city giving back in spades -- and we are still close enough to the city activities we enjoy.

To add to your first point about credit. For the Canadians readers you can get free credit reports using Equifax Canada and Transunion Canada. I'm not sure about the U.S. I get one yearly to check on any identity fraud because I had someone at my old address receive a piece of government mail and use my SIN# to help her buy things.

I also disagree with point #6. I say look at as many open houses as possible. I looked at open houses before we were ready to buy and continued to look for 2 years. I found it very helpful to see what amenities I could get in different areas of the city and also to see how reality differed from the ad written by the realtor. Also pictures on the mls were very deceiving.

I'm so proud of you, spouting terms like PMI and watching the unsavory vid of your new pipes. The latter is advice I would have offered you had I decided that I would only spout my opinions upon request. Your list is a good one for those beginning to look. I think you can actually get credit reports free annually from the major reporting companies, which helps you determine your credit score.

You're going old (older than my ancient digs, even), but your house looks like it's been renovated. However, don't be surprised when something needs replacing or repair. This goes double for people building a new house; I've got anecdotes from friends whose newly minted homes crumbled as they moved into them.

It's natural to make a home your own, but I suggest living in it before going jiggy with the color pallette or loading it with furniture. We've had the advantage of waiting and saving, and our ideas have always gotten better than they started out being. It is also important for most of us not to buy a bunch of furniture or appliances before closing, because for anyone on the edge of acceptance it can throw your credit rating into an abyssmal tailspin. There is also some superstition in planning too far ahead of closing.

Aside from that: enjoy. You've picked a home that appears (in the limited photos you've shared) to be one you both can live in for a long time, as well as any "other" people who come along later on. You've inspired me to ponder my home a bit on my blog today, too. After seven years, I still love my dumpy house and the life my wife and I have built in and around it.

This is good advice. And in 50 years, when I finally get my credit in order and am ready to purchase a house, I'll be sure to keep these things in mind.

Teej makes a good point about looking at a lot of houses before you're ready to buy--it IS immensely helpful to know what's out there and for what price because it gives you bargaining power and keeps you from overpaying.

BUT, if you're on the brink of buying (i.e., just a few months away, as we were) and you have a basic idea of your budget, I still think it's wise to get familiar with your credit and get pre-approved for a loan BEFORE you go to any open houses (looking online is a little safer). Simon and I were planning to wait until the fall to buy something, and I was hesitant about going to any open houses until we were ready because, the market being what it is here, I didn't want to risk falling in love with a place and then not be able to make a winning offer before someone else snatched it away. Back in March I was convinced I'd found The Place online (it was being sold by my former landlord; surely that's a sign!) and when it sold in a weekend, I was devastated. If you tend to get attached easily, this can be rough on the heart.

So, yes, look at a lot of places, but if you're ABLE to buy, you might as well prepare yourself to do so just in case. This is a one-of-a-kind house (you don't know the half of it yet), so it wasn't like we could have passed on it and found something just like it six months from now. That probably depends on where you're looking too, but it's worth keeping in mind. Anyway, pre-approvals and good-faith estimates from a broker are free and they're the best indication of how much everything is going to cost, so why not?

Are you counting down the days?? I know we were. It's so exciting! It's your house so you can do anything you want to it. No landlords to say otherwise!
All great advice.. Let people know you are looking and you'll get so much advice. Some good.. some repetitive.. "yes, we are getting the home inspected..".. but definately ask lots of questions.

Are you counting down the days?? I know we were. It's so exciting! It's your house so you can do anything you want to it. No landlords to say otherwise!
All great advice.. Let people know you are looking and you'll get so much advice. Some good.. some repetitive.. "yes, we are getting the home inspected..".. but definately ask lots of questions.

I've said it before but it bears repeating, congratulations on the great news.

I might add:

7. Cut down over-spending on unecessary stuff like rhinestone covered guitars. Your going to need that money when the water heater breaks.

Either that or save money by buying a super-cheap plain guitar and then shopping around for affordable rhinestones to glue on yourself.

It appears that you both need the gift of a watering can. :-)