We Are Getting Closer
We signed the seller’s counter offer and are officially under contract. We have ten days to back out without question. However, if we choose to cancel the deal after next Tuesday, we will have to kiss the $2000 in earnest money goodbye. It’s time to do our due diligence and make sure we are getting everything we paid for.
Heads From Tails
It’s been an eventful two days trying to not only make the planets align, but figuring out what the alignment is actually supposed to look like. We are very thankful to have a knowledgeable real estate agent working on our behalf. She has 30 plus years of experience and it shows. Not only did she help us decide what our needs and wants are, she’s given great recommendations regarding our mortgage banker, home owner’s insurance provider, and home inspector. If you’ve never purchased a house before, I can’t stress how important it is to find a reputable Realtor to help you along your way. Really. I know some of you out there are thinking about how much money you will save by doing this on your own. Don’t bother. Spend your time doing the things you already do well. The seller will pay your real estate agent’s commission anyway.
While we are still trying to cross our “t’s” and dot our “i’s”, here’s a quick list of what has happened since signing the contract:
- Made contact with recommended home inspector and set up inspection for Friday morning. It’s our understanding that many inspectors prefer that you are not present as they perform their inspections. Our Realtor only recommended insepctors that allowed us to be present during the inspection, and both my wife and I fully intend on being there the whole time.
- Made contact with mortgage banker, American State Bank, who had previously pre-approved us when shopping for a home. We compared the 15 and 30 year fixed rate mortgages and ultimately decided to lock in a 4.5% interest rate on a 15 year fixed loan. We will actually be signing an 80/10/10 loan. 10% down, 10% second lien at 6%, and the 80% represents the remaining balance. This will save us the $40-$50 in Private Mortgage Insurance each month.
- Made contact with home owner’s insurance provider and received a quote. We went with a reputable local provider who’s rates were roughly 30% less than some of the national brands. We were initially concerned about what would happened if we ever had to collect, given their rates were so much cheaper. But after finding an A+ rating given by the Better Business Bureau, we feel comfortable with our decision.
I think we have done all we can for now. American State Bank will be sending us additional paperwork soon and we will eventually have to meet with the insurance company to sign even more paperwork. We are both a little frightened about the leap, but we are well prepared to handle the commitment. We’ve been saving for a couple of years now, shopping and doing research in our local market, and we have been living on a budget. Thanks to adhering to a budget for the past several months, we are comfortable with how much money we have allocated to the house payment. The excitement and anticipation of owning our own home along with the confidence that we are making the right decision far outweighs any other emotions currently present throughout this process!
