The evils of Bank Owned buying!

So I am here in the desert staying with my 'rents and driving them nuts I am sure. Hubs is working the work, kids are playing the play and my time is spent on using my mean voice on anyone having anything to do with the house. We love the house we found. It has lots of space for our extended brood. It is a blank slate for us to paint and build and enhance. We signed papers last Tuesday. Yup! Great news right? WRONG!! The owner is a bank and well bankers can be very money grubbing, picky, bratty, bastards. I should have keys to my house. After all we are paying for the utilities, we have the loan, we have movers coming BUT the bank is throwing a fit over a couple hundred dollars holding up my keys and them receiving a big fat check. Makes absolutely no sense to me. My advice is totally go for bank owned as you can pay pennies on the dollar but be prepared for a longer than expected buying process. It will be really sad when all the bad karma comes to bite the bankers on the butt. OH WAIT that is already happening, muuuahahahaha.

The need to knows of buying in the current market.

So we got the house!!! Yay us! However others I know are looking to jump into the market right now so I figured it would be wise to post some basics that we have discovered through the process.

1. Fixed rate only - Do not ever ever EVER do an adjustable rate. That is how so many have lost their homes now.

2. Short sale = no bueno. Short sale means that the seller is selling for less than they owe so your offer is pending bank approval not owner approval. Usually this is someone facing foreclosure trying to get out before that happens. Another negative is that they take like 90 days at least for processing. Finally it also means that until closing other offers will be looked at so if someone comes along and offers $5 more they could very well take it from you.

3. No 100% financing - If someone offers you this there is a twist. Read the fine print and everything that goes with it.

4. Taxes, mortgage insurance, and homeowners insurance are often not added into a mortgage calculator so remember you will be paying these each month on top of what you finance.

5. Mortgage insurance is paid until you have 20% equity in your home. The faster you get there the better.

6. Pick the payment you want to pay BEFORE you look and prequalify. We went by what we want to pay not by what we qualify for. No point in being house poor.

7. You need credit above 650 for FHA and 690-750 and above for a conventional loan.

These are just the basics that we have learned. Do your due diligence. Research the are for comps, schools, and crime to get a good idea of what you are moving in to. If there is a houseing association read their rules and make sure you can live with them. Most of all good luck. This is an amazing time to buy that first home.

Made an offer!!

We made an offer on a house we love. One thing I am discovering in this process is that I am terrified and excited all at the same time. This is the start of a wonderful chapter in our adult lives. It is absolutely time to make this leap. It also is the start of huge responsibility. If the dish washer breaks we have to fix it. I love that we will have something beautiful to show for all of Hub's hard work. It is way past time for him to feel like the money he earns goes to something fun and beautiful and all ours. I am excited to have a place for the girls to play. I am excited to have more than one bathroom! I am excited for not hearing stomping above our heads at all hours of the night. I am so excited for actually using my closet to store clothes rather than tools and Christmas decor and books! I am terrified. Have you noticed how expensive a good water heater is? And window treatments and paint colors and flooring. Appliances can knock you on your tail. We need this step and this journey into home ownership. Wish us luck!

Homebuying with a twist.

So we are currently looking for a house to buy. Looking at listings, checking locations and schools and neighborhoods. The twist is I am doing it all from well over 1000 miles away. Luckily I have trusted people close enough to the area to actually view the houses for me but I have to say buying a house sight unseen is a bit nerve wracking. Add that I have some important things on my list of needs and it is down right terrifying. Being all preparedness minded means I want space enough for decent food storage, an area to at least have some herb boxes if not a few more things. Ideally I would have a full garden but when in the desert not a lot grows there bountifully. I want a house that I can easily, if slowly, make as energy efficient as possible and that has space for a generator to be added. I have narrowed it to a couple options. My peeps will check them out top to bottom with tons of pictures. They will also do a basic inspection for me so we can be as informed as possible. Wish us luck!!