Wine Wager...Part I

Trust me, if you ever make a bet or wager anything while sitting in a hot tub, fully clothed, with wine glass #3 in your hand, you are gonna lose!  Do not even go there!  Thus, the luau party I will be providing in the near future to include 50 hula dancers for dear friends!

Let me back up to the days preceding this wager...my husband, Lee, and I have thought about trying to buy a house for the past year or so.  The housing market is fantastic right now with extremely low interest rates, plus I desperately need a tax write-off for my home business.  Also, our lease was due to expire on the home we have rented for the past almost 8 years.  We really did not want to continue renting and our landlord has been becoming extremely more unstable and hostile.  (Mimicking senility or severe mood swings).  However, I just could not foresee us actually being able to make this happen.  Us buying a home?  We know so many people who are home owners, but also know so many home renters, like us, as well.  Hence, the wager.  While my girlfriend and I sat in that hot tub, we discussed the possibilities and she encouraged me/us to move forward (she has already done this multiple times).  We sealed the conversation with the promise of a luau (her fiancee threw in the request for hula girls!) only if we were actually able to buy a home.

We will be closing escrow this week.

So, as first time home buyers, we have learned a lot and also have battle wounds from this whole process. It has been said that buying a home or moving is as stressful as going through a divorce or dealing with a death of a loved one.  It's true.  Whoever says that buying a home is exciting and wonderful and so satisfying, I would like to know who "whoever" is so I can duct tape their mouths shut.  I feel this is cruel and unrealistic advice.  But, I'm not to the "wonderful" part.  In all actuality, it is a grueling process, short of giving blood.  We have not stepped into the "satisfying" part yet.  I will blog that in Part II at a later date.  But until then, I am going to share some reality tips I hope will be helpful to anyone thinking about buying a house for the very first time.

I wish we had someone who would have just explained the process in simple terms, step-by-step.  So far, these are some of the things we have gone through and steps we have taken:  Research, read, ask a ton of questions; find an agent who narrows down your search and shows you properties; look at properties; be prepared for bidding wars, i.e., there are more buyers than homes available; make an offer (the agent does this for you) on a home you are interested in (we made two separate offers on two separate homes, one was a short sale and did not work out, the other is the home we have bought and our offer was accepted, short of a miracle!); be connected to a lender or middle man (usually a referral from your agent); put an amount down through escrow (thank God for my 403 B!) to secure your offer; escrow company steps in (the middle-middle man); home inspection (paid for by you!); home appraisal (paid for by you through escrow company out of your funds); work on clearing all conditions (buyer and seller), things like repairs or credit corrections; the grueling process of paperwork and proving you are not a drug cartel member or living under a different identity through your lender; more conditions needing cleared by mortgage company who was now stepped in (who you will pay your monthly mortgage to) connected with your lender; more paperwork; did I say more paperwork?; property walk-thru and closing escrow day.

There is SO MUCH involved in buying a home.  We were fortunate to have a 60 day escrow because renters are living in the home.  I cannot imagine getting all of this done in 30 days, the time of most escrows closing.  The very best thing one could ever do is to own a fax/scanner, have a cell phone and computer at your fingertips and be a multitasker!  Because I work from home and AM a multitasker, I believe this saved us.  Otherwise, you will be quite busy during your after work hours, evenings and weekends.

On to some tips:


Tip #1:  Read, research and ask questions!

Equipping yourselves with every little detail with buying a home will save your sanity.  Talk to those who have gone through this process.  Ask as many questions as you can until you understand.  A great site that is free and hosts discussion boards, blogs, professional advice and so much more resources can be found at Zillow: http://www.zillow.com/.

Tip #2:  Having no debt is NOT always a good thing!

Unfortunately, my lack of a car payment (paid off a few years ago) and credit cards and no debt whatsoever did NOTHING to help my credit score.  Thankfully we had time to add me to all of my husband's debt!  Amazingly having his debts increased my score!  (This makes no sense to me to this day!)  The wisest thing anyone can do is pay their bills on time every month and maintain credit cards and other debts with minimal balances, because this is where the credit scores come in and help secure good interest rates for a mortgage.   (CREDIT SCORES ARE IMPORTANT FOR HOME BUYING!!!)

Tip #3:  Find a good agent AND a multitasking lender!

Like your agent.  They will work for you.  It is so important to almost love your agent and to trust them explicitly, as they will no doubt refer you to a lender, who is basically the "middle man" in the home buying process.  Try not to hate your lender! I said try, right?  At least keep your burning feelings undercover! The information they need from you is a grueling, continual process that does not stop until the very end.  Be prepared for that.

More to come...