Mortgage Monday: Not Recommended

There used to be plants there...

One of the many projects that we have checked off our list so far this summer has been to get some basic landscaping done. Nothing complicated or expensive. Basically, all we needed to do was to remove the plants around the house, side and back, and replace with grass or some means of drainage. Again, simple is better and what we really wanted to accomplish was to minimize maintenance while avoiding future potential problems.

After going through the usual process and receiving a few quotes, some in writing and some over the phone, I decided to hire a local landscaper who came well recommended. Everything was falling into place and we agreed upon the work that needed to be done. The whole process was going smoothly… at least until they showed up and actually started working.

Well, it was bound to happen. Our luck has been too good with contractors, service companies, sales people, and other transactions lately. Someone was bound to foul up at some point and last week we had a “winner”.

I took the time in the early morning to give a final review of the tasks that needed to be accomplished for the day… this was a one day project. When I left for work that morning I felt pretty good about what I would find when I came home that evening. After multiple phone calls throughout the day and seeing what still needed to be done when I pulled into the driveway that night, that level of comfort had completely disappeared... the work was going to take an extra day and the work that had been completed was not of the quality that we were expecting (I'm not sure that they are familiar with the concept of parallel lines). 

In reviewing the footage from our security system, speaking with my wife, and watching a little as they got started the next morning it was clear that this was nothing more than a paycheck for them. Now I completely understand that they need to make a living but that doesn’t mean that short cuts should be taken or they should provide substandard work simply so they could get to the next job that much faster. It was actually to the point that I had them remove some work and change things up on the second morning as I had little confidence in what they would end up producing.

Thankfully, we have a contractor that we trust and that will fix the errors left behind. But it is safe to say that we will not be hiring this company again for some of the future projects that we will be having done in the yard. At this point I’m just glad that I hired someone else to take down the trees around the property because these guys, based on the work that I did have them do, might have taken out the house, or at least the shed or gazebo, in the process. At the very least, I know they wouldn’t have done the excellent job that Monster Tree Service did a couple of weeks ago (I highly recommend this company). I think I will stick with the people I trust for now.

Mortgage Monday: Revising The Project List

My wife and I have continuously kept an informal project list of things that we would like to have done at the house. As I have written about before, some things are more pressing than others with the majority of these tasks being things that we want to do rather than things that need to be done. However, in the end, they are all projects that will transform this already wonderful home into a perfect one.  

Of course, we have to work within our budget so some things have been shifted around according to our finances. This has also impacted the overall timeline of the work we would like to get done at the house. That being said, as we have priced out some of the items on our list there have also been things shifted up or down accordingly. Lately, those prices that we have seen have allowed us to move things up in our timeline.

To review, here are the things that we have known for some time and which we had planned to address over the next few years:

• Installing office door
• Flooring (hardwood or laminate?)
• Minor electrical work (fixing existing issues)
• HVAC overhaul
• Replacing boiler with hot water tank
• Installing steel duct work
• Installing two HVAC units
• Installing underground tank for gas
• Side Deck
• Front Porch
• Repair / replace retaining wall
• Tree removal
• Installing chimney cap
• Repointing masonry
• Garage Door replacement
• Re-grading around the house

That was the basic list that we came up with shortly after we moved in and it remained relatively unchanged for a few months. Over time, we added a few more items:

Interior painting

• Replacing kitchen and bathroom hardware
• Replacing appliances starting with the washer and dryer
• Converting fireplace to gas
• Expanding bonus room upstairs and finishing

Now, the list has grown to include a few new items and some clarifications on the aforementioned ones as well. With the existing things that we knew from the beginning, previous additions, and a batch of new items, this new roster of projects now consists of the following:

• Installing French doors to my office
• Installing hardwood floors throughout
• Minor electrical work (fixing existing issues)
• HVAC overhaul
• Replacing boiler with hot water tank
• Installing steel duct work
• Installing two HVAC units
• Installing underground tank for gas
• Converting fireplace to gas
• Install gas or solar generator
• Installing composite side deck and front porch
• Repair / replace retaining wall
• Tree removal around property
• Installing chimney cap
• Re-pointing the patio
• Garage Door replacement
• Re-grading around the house
• Interior painting
• Replacing kitchen and bathroom hardware
• Replacing appliances starting with the washer and dryer
• Redirecting dryer vent
• Replacing refrigerator
• Expanding bonus room upstairs and finishing
• Replacing front, side, and patio doors
• Lighting fixtures in all bedrooms
• Replacing toilets
• Resealing basement walls
• Re-configuring landscaping (removal of flower beds)
• Replacing / adding outdoor lighting
• Replacing doors to garage with fire rated doors
• Replacing gutter guards
• Replacing blinds
• Installing new window treatments
• Replacing windows

What started as a relatively small collection of projects has grown rapidly into a long list of things that we would like to have done to the house. And while there are many more project than before, we are still hoping to get the majority of these things completed by the end of next summer. Some things will be quick while others will take weeks and some are things that we will get done eventually like replacing the windows. So, beginning this summer, things are going to be quite busy around the house but, slowly and while sticking to a specific budget, we will transform our home into one that we have only dreamed about in the past.   

Mortgage Monday: More Babyproofing

When my wife and I were looking for a house it was always in the back of our mind the steps that we would have to take with each property both right away and in the near future to make sure it was a safe environment for our son. Some places were better than others and while the home we eventually purchased wasn’t exactly what we had in mind, we knew that it had everything we wanted and we could baby proof everything with relative ease. When we first moved into our home we, once again, took stock of what needed to be done but, since our son wasn’t mobile at the time, nothing was pressing.  

A few months later and the trips to Lowe’s, Walmart, and other stores became more frequent. When he first started crawling we made sure to take care of the babyproofing basics around the house. This consisted of making sure that the outlets had covers, baby gates were installed, and a foam buffer was secured around the hearth. At this point, we were pretty much ahead of the game in most regards. However, we quickly fell a little behind.

Before I knew it, I was putting up additional gates, including some handyman work to install the one at the top of the stairs, putting covers on door knobs, and constantly surveying the house for the odds and ends that could cause a problem. After a long weekend, we were once again where we needed to be but that didn’t last very long either. With our son’s first few steps that pesky list reappeared and quickly began growing until finally we couldn’t put it off any longer.

This time around things were a little more involved as we installed locks on the kitchen cabinets, secured furniture to walls, and rearranges some of the other items throughout the house so that it would remain out of reach of our son’s tiny curious fingers. This was also about the time that we had to readjust our car seats and install additional doorknob covers. Again, we got caught up rather quickly but find ourselves with a list that refuses to go away.

Each time we have to add or install things here and there we think back to some of the houses that we looked at during our search. Every time we are relieved that we made the decision that we did and purchased the house which we now call our home. It just goes to show that even if a house seems perfect and could have immaculate staging, you still have to think about your needs and how well that space works for you now and, more importantly, in the future.

Mortgage Monday: More Estimates

Whenever work needs to be done at the house that is beyond my limited capabilities, it is rarely a simple process to get that job done. Early last week I was finally able to set aside the time research some of the contractors and other service providers in the area. Home Advisor was actually a pretty useful tool for this in addition to work of mouth and local publications. We have had our project list pulled together for some time now and I did receive a couple of estimates for a few things that we need done but I am never one to settle for a single quote. So, with a break in the chaos of the week, I pulled together a list and got on the phone making dozens of calls and leaving a multitude of messages. With all the research done and calls placed, the rest of the week was filled with fielding responses to my queries.

The first set of calls that I placed was to some of the reputable tree service companies in the area. There are at least three trees that need to be taken down around the property and probably a few others that will need to come down in the near future. Heading into this initial investigation I knew that this is an expensive proposition as a couple of the trees are at least a hundred feet high and not in an easy location on the property. Additionally, at least one of them is so far gone that scaling in the trunk is not going to be a possibility. Of all the companies I called I was only able to get a hold of one of them who stopped by the house on Friday and delivered an unofficial estimate at a figure that I was in line with my thought process.

The next call was to a company to replace our garage doors. While one is still serviceable the other door is useless at this point and given the age of both it just makes sense to replace the pair (as well as the motors). Again, I already have a quote for this project but it is definitely one that I believe can be beat by, hopefully, a significant margin. This is one of the companies that I will have stopping by the house this week.

The last group of correspondences were to a few of the recommended general contracting firms and smaller craftsmen in the area. The one recommendation that I did receive to install some doors to my office was booked… and when I say booked I mean that he didn’t have an opening in his calendar until February 2017. A couple of the other companies I contact gave me a call later in the week and will be coming out to the house this week as well. It is definitely going to be busy around the house with all of these people coming and going but at least I will have a few sets of numbers to work with.

Mortgage Monday: Estimates

While I was hoping to get a head start on this process much earlier in the year, sometimes things just don’t go exactly as we plan them. Of course, there isn’t anything really pressing at the moment… there isn’t anything that absolutely needs to get done at the house. There are projects that should be started (and finished) soon like replacing the garage doors but there is nothing that needs to be done.  

Unfortunately, without things being set into motion, there is plenty of time to add things to the list. And the list is getting quite a bit longer than was previously disclosed. All of that means is that the dollar figure at the bottom of the sheet of paper keeps climbing which makes me look back and really start cutting some of the unnecessary expenses from the growing budget. This has become an even more essential task of late as we have received a few quotes.

The biggest expense on the horizon is replacing the existing heating and air conditioning systems (which also means we have to swap out our hot water supply). Currently we have an undersized air conditioning unit (I have to call the home warranty company about this) and a loud boiler in the basement providing us with both hot water and heat through the zoned baseboard system throughout the house. While functional, it is not working for us. We will be switching to a central HVAC system with a hot water heater in the basement. While most would balk as we did at the $25,000 estimate (lowest available for quality work), the simple fact is that we will recoup most of that expense in the increased efficiency.

Some of the essential repairs and alterations needed are also quoting out much higher than expected. Actually, the garage doors and motors were a little lower at $2500 while the interior French doors to my office are much higher at $2500. Some may consider these as extra expenses but, for us, they are two smaller projects that need to be done. I am not going to simply repair or replace one garage door with an uninsulated patch… it makes more sense to just replace both and take care of the motors at the same time. And the office door is needed so that I can actually utilize my office.

The last think on this list of initial quotes is the removal of dead trees. While we had much of the property taken care of a couple of weeks ago, there are still a few leafless monsters swaying in the breeze. Because of their size and location it is not going to be a cheap endeavor. The first estimate is about $2800. Some may see them as simply an eye sore but they are within striking distance of the house and it is an unnecessary risk to leave them standing. I just hope that we can find a better price.

Everything else on our long and growing wish list is pretty much on hold as we pursue these projects and try to find a way to pay for them. Once these are done we will re-prioritize the rest of the list and decide when we want to tackle additional improvements and whether we will be able to budget for them. Of course, we will also factor in what makes sense for us now and in the long run… sometimes it is best to get something done now and other times the better option is to wait. We will just have to see what happens with these first few items from our list.

Mortgage Monday: The Next Purchases

Another purchase down and many more to go... 

Now that the lawn has been taken care of and the property is in a state where we can actually enjoy some time outside it is time to start looking for all the other things that we previously avoided. While there was some outdoor space at our last rental we pretty much didn’t spend any significant time outside on the small patio and opted to take advantage of the spaces maintained by the homeowners association. Of course, we didn’t really have the time to plan anything especially since we considered that place a stopgap.

While we previously bought a tractor and already had a few other items necessary to maintain the property (i.e. snow blower, rakes, trailer for the tractor, leaf blower, etc.) we have still been needing a few other things to round out the tool shed. And thanks to a $100 refund on the tractor, we did cover a few of those things by picking up a weed eater and other small items. However, that is only a small part of the long list of things that we need for our outdoor space. Thankfully, the other items are more about relaxation rather than work.

Having purchased a lot of furniture late last year just prior to settlement I am not really looking forward to buying any more but that is the situation that we are in now. Thankfully, this is a much smaller endeavor this time around as we are looking for something to complete the patio. While we have one adirondack chair out there now for relaxing and we will be purchasing another shortly, we need to find a decent table and chairs that is also toddler friendly. We did take a quick look at a few things this past weekend but didn’t end up buying anything… some of the options at the big retailers are really expensive!

This is going to be one of those searches that both needs to get done rather quickly but that is also going to require some online investigation and, possibly, some trips to various consignment stores and thrift shops. It all comes down to finding some outdoor furniture that will allow us to enjoy the outdoor space that we now have while, at the same time, keeping it budget friendly. After all, we have had a lot of expected and unexpected costs lately and we want to retain some semblance of financial sanity. This is not an unmanageable task and we are all looking forward to making the outdoors part of our home.

Mortgage Monday: Yard Work

As the rain continued to fall off and on and the grass kept growing longer and longer, I finally found the time on Saturday to head over to the local Tractor Supply and pick out a tractor. There are a couple of other places closer to the house where I could have bought something but I decided to give a different retailer a try based on the recommendations of family members. Being that this was my first time at the store, it was an interesting experience seeing all that they have available on the shelves… the retailer is much more like a traditional hardware store than the giants that you commonly see from the highway like Lowe's or Home Depot. I prefer going here from now on. While I was there for a tractor this time around, it is nice to know that I can stop by the store (about 15 minutes away from the house) if I were to need other items.

It didn’t take long before I found the Cub Cadet that was recommended to me via text message last week and within a few minutes I was working with someone to figure out warranties and a means to have it delivered to the house…. I can fit a lot of stuff in the Jeep but a tractor is not one of them. It was during this conversation when I asked if they knew of any local landscapers who would be able to give me a head start. Thankfully, the woman with whom I was speaking had a name on hand, her landscaper, and, better yet, he would be able to pick up and deliver the tractor for me too (for free!).

On my way home, I left a message with the landscaper and by the end of the afternoon we had coordinated a time for the following afternoon to evaluate what needed to be done. And, yes, I checked with my wife to make sure it was okay for him to stop by on Mother’s Day. After walking around the property, we both agreed to a very reasonable price with work to start the following day. While the rain today has prevented us from making any progress, the work will be done this week.

While it is going to cost us a bit more, having a four man crew come in for two days and take care of everything is well worth the investment. I have no problem maintaining but I simply don’t have the time to catch up on the yard work. And, hopefully, we will have someone we can call moving forward should we need any additional landscaping or handyman work done in the future. For now, we are really looking forward to seeing the property cleaned up and seeing our son enjoying some more time outside.  

Mortgage Monday: Needing Separation

While I have a home office, I have yet to use it as much as I would like. In fact, I have used the kitchen more than any other place in the house to get work done and it has actually worked out well so far. While it may not be the optimal place to get projects done, it allows for greater flexibility to switch from work to family. Again, not the optimal work conditions but I can’t help it.

To be honest, the space I am currently using to get work done is more because of the fact that there are a few projects still incomplete around the house. Namely the organization of my office which at one point was pretty close but it now a bit disheveled. However, the biggest thing preventing me from using the space is the simple fact of noise. My office is currently open to the main entrance of the house and the stairs to the second floor. Any work that I do in the office could wake up our son.

This is just one of many projects (which have all been discussed previously) that have to be completed. I consider this one to be an essential change to improve the functionality of the space. And that it important to note… we have the space. This is a luxury that we have to work with… we don’t have to move things around or have multipurpose rooms. We have the space to separate everything and our goal is to separate work from the family.

That strong divide is something that I would like to reestablish sooner rather than later. Not only am I able to be more efficient and productive but I can keep the piles of papers and my computer out of the family space of the house. We all need that divide between work and home whether it is a long drive or simply a door between rooms. Of course, the nice thing is that my wife and I both have our own spaces which we can make our own because, again, we have the space to do it. But this will also take a little time.

It just goes to show that things still need to be figured out over time even though you may have found the perfect home for your family. There are always going to be projects that have to be done to fine tune the house to fit your needs. This is because of the simple reality that a perfect home is going to be an imperfect house.  

House Mail

Over the last few days my wife and I have received a few letters in the mail regarding our house... another couple of firsts… which were equally good and bad. The first letter that we received was something that we knew was going to show up eventually and we weren’t looking forward to it… our property tax bill. It is almost like being lulled into a false sense of relief when looking at this total with the knowledge of what our total annual taxes are on the property. This was obviously the first and much smaller bill… the school tax bill will arrive this summer.

Having paid our taxes up front at settlement… actually, our mortgage includes the funds being held in escrow that we need for our annual taxes… I scanned and sent the invoice off to the bank. While it means a pretty significant increase in your monthly mortgage payment I do recommend having the bank hold these tax related funds in escrow as the last thing that I wanted to pay this past month was a rather substantial property tax bill. It was reassuring to see this invoice taken care of without a big hit to our account and without any impact on the amount we still owe the bank.

Another piece of mail that I scanned and sent to the bank was our official approval for our Homestead Exclusion. Essentially, since we own this property which serves as our primary home, we are entitled to a slight reduction in our school taxes. And when I say slight I mean very, very small. But, at the end of the year, whatever that amount may be, it is still money that stays in our account. Given the size of the invoice that we are bound to receive, about 2-3 times more than the initial bill from the township, it will be nice to be able to hold on to a few extra dollars.

I guess you could say that these are a few of the unpleasant first time experiences as new homeowners but, in the end, we wouldn’t change a thing. There are some ‘negative’ things about ownership and the responsibilities that we now have as partners in this endeavor but, in the end, they are minor in comparison to the benefits and security that we now have in our home. We know where we are going to be for the long term. We know where our son is going to grow up. We own our home and we have land that we are free to enjoy (after taxes).

Mortgage Monday: Interesting Questions

No matter where, when, or at what price you purchase a house you will always have questions about your new home. Some are as simple as where things are located in the house while you still get used to your new surroundings. Other times you are curious as to the best routes and best places to shop around your new location. These are just a natural part of the process no matter who you are, where you live, or how much research you did before you bought your property. For some that remain local or knew the former owners they are quickly answered while for most of us it is just a process that takes time.

However, there are a few other questions that I find floating around in my mind that I have also asked a few people from time to time. They are actually more prevalent than I thought even for those who believe that they have the perfect home. It also proves that there is more to a home than the place or the structure. Here are the questions that most people admit to having had fun with in the past:

• Would you still chose to live in the same place where you currently live? If no, where would you look? Yes. We really enjoy the town, the privacy, and the space. 
• Would you build your house the same way that you bought it? No. There are certain things that we want to change and add. Nothing needs to be changed. All minor things that are easily adjusted. Also, there are some aspects of our home that, at the time of purchase, we didn’t realize we wanted.
• Would you live in the same place and/or buy the same house if you had unlimited funds at the time of purchase? Yes and no. Great value in our home but we might have made some modifications immediately after purchase.
• I guess the same thing applies to those that had their house built… would you build it the same way now that you have lived in it? N/A
• What would you change (what would you have changed at the time) if you had unlimited funds? N/A
• Change or rebuild? N/A

I am sure that many of you were thinking about your own responses as you read through the questions above. And for those with whom I have spoken that consider the place they live to be their home, there is nothing in their responses that have led then to regret their previous decision. The certainty waivers a bit when people consider the place they live to be their house. For me, this has actually been an interesting exercise that has proven our decision to be correct time and again… we found the perfect home for us even with its imperfections.

Mortgage Monday: Where’s The Warranty?

Over the course of the past several months since we purchased our home, there have been a few things here and there that we have found that need replacing. Nothing major at this point but all items that we are trying to address in as timely a manner as we can manage at this point. Of course, there is also a process that we must follow when assessing each of these minor issues the first step is to assess our home warranty to see if any of these items are covered. This, as should be a surprise to no one, involves scanning a lot of fine print and numerous phone calls to clarify the coverage of some items.

The first issue that we encountered shortly after moving in was the self-destruction of our garage door… no one told us it was made by Mission Impossible Brands. It was a simple matter of a single bolt coming loose but it was enough to grenade the door. And, of course, it is something not covered under the warranty. So it remains one of the small but annoying items on our list of things that we need to address in the coming months.

It is the little things such as this that just seem to add up and it is never a small item that is included in the fine print of the home warranty. The wording is almost clairvoyant in the way is side steps many of the minor issues that we have encountered. While nothing is of great significance and would be considered an annoyance more than anything, they all add up as more and more small items turns into a rather large list.

And, right now, we are only in the very beginning of this process. As many of you know, all of the little quirks and minor repairs usually pop up within the first year… we are only half way there. I can see a few things that may be problematic in the coming months and have already started checking for warranty coverage. Our luck could turn in this regard but we won’t really know until we try to use it. However, we can’t lose sight of the simple fact that this remains a solid house.

There are many issues that I have heard about from others that are nowhere to be found in our home. Again, the ‘issues’ that we have encountered are very minor and it shouldn’t be an issue making these small adjustments, changes, and repairs. As was written about before, the optional list is something completely different. But, so far, things are good and we will make the necessary modifications… one project at a time.

Mortgage Monday: Scanning The Market

Every once in a while I go on some of the real estate websites to see if there is anything new on the market in our area and how much people are asking for those properties. In one regard this is simply a habit that started a few years ago when we were still in the process of finding our first house. Now it is more of just trying to see what the market is doing around us now that we have found that place to call home. In some ways what I am seeing is kind of surprising but at the same time it is an expected trend that I started to see develop during those initial months of searching years ago.

When we first saw our home come on the market we knew that we had a tremendous opportunity right in front of us and we moved fast. It was meant to be as earlier in the week a deal that we had on another property fell through. Since the day we signed the last of the mountain of papers and accrued a new mountain of debt, I have watched the market slowly rise and the inventory evaporate. While much of this can be attributed to the season, it isn’t the whole story as this particular market did not react the same way in previous years.

Now there is nothing on the market and prices continue to climb even faster than I had expected based on the market evaluation just prior to settlement. Heck, in a matter of months it may get to the point where we would have been priced out of the market had we not found our home when we did. It has been a great feeling seeing the hard numbers both for the obvious financial security but also because it shows that we were right in selecting the growing community in which we now live.   

And that second half of the equation is the most important part for me as we are not in this for the financial gain… we purchased our home for the permanence and potential of never having to move again. This is now our home and our community and we were lucky to have found this property when we did because I don’t know where we would have ended up had we waited for another year. As I watch the market continue to develop and rise, I doubt that we would have been able to find the space, the land, or the price that we did when we found this house.

Mortgage Monday: Four Categories

I might have to call these guys!

While there is nothing wrong with our home there is always a list running in my head about different projects that we will be undertaking in the near future. Mind you, not everything falls into the project category but the list is definitely growing. Simply put, when looking around the house, there are generally four categories that everything falls into:

• Fine as it is
• Repairs /adjustments (possible replacements) needed
• There has got to be a better alternative
• Something is missing

The basic structure, kitchen, landscaping, and many other things fall into the first category. There really is nothing wrong with any of them. Nothing came up during the inspections and nothing has manifested since then. We like the layout of the house and so far it has been working for us. In fact, many of these aspects, especially the kitchen, are better than we were hoping to find when we first started our search so there aren’t any projects to speak of for these and many other things.

The second category comprises many of the things that most homeowners opt to replace, upgrade, or eliminate all together soon after buying their home which includes paint / wall coverings, flooring, kitchen and bathroom hardware, and other things that are more about personal taste than functionality. Not everything is optional as we also need to increase insulation in some areas, reseal the basement, clean up some minor electrical, cap the chimneys, repoint some of the masonry, and replace the retaining wall along the driveway. Of course, there are also things that we chose to replace as the current systems, appliances, etc. still work but are past their prime. For us this includes the washer/dryer, refrigerator, garage doors and openers, and AC unit. They all still work but it might be best to replace them now and avoid the immediacy of having to replace them quickly when they stop working.

The third category is something that we have been thinking about a lot lately, especially during the really cold nights, and we are considering overhauling the whole heating system for the house. Right now the boiler that supplies the baseboard heat his rather loud and, given how much we are spending on oil, not very efficient. Note that the same boiler is on year round as it also provides our hot water.

Basically, we are already looking at replacing the 10+ year old and undersized AC unit so we might as well get everything done at the same time and put a full HVAC system in. This would also allow us to pull out all the baseboard heating which are son is a little too fascinated with and which limits the wall space in our home. Of course, if we pull all of them out we might as well replace flooring and redo the walls at the same time as we don’t want to have to patch everything and then work on it later. Lastly, we are not going to keep the boiler just to supply the hot water so we will have to install a new instant hot water system while we are at it. As you can see, this third category tends to trickle down.

Finally, the fourth category is really about the things that we want but don’t need. A front porch would be nice to have (and a walk way across the front of the house) as would converting the fireplace to gas. We would also like to finish off one of the rooms and possibly the basement at some point in the future. However, we have plenty of space now so I don’t really see that happening any time soon. Again, this category is basically the splurge column. None of these things are needed but they would be nice to have an undoubtedly enjoyed.

That is the basic rundown that we have been going through recently as we continue to adjust to our new life in our new home. Some are items that we should check off our list this spring or summer while other projects can be held off for future years as we have the time, patience, and finances to tackle each of them. Again, we are already starting with a great home but this is the natural progression of things… every home owner goes through the same thing even those that build their ‘perfect’ dream home. And, sadly, I know that these lists will never disappear they will simply morph over the years to include other items and projects.

Mortgage Monday: House Files

When we first made an offer on the house one of the contingencies that we put in the contract was to have all the files related to the property. Given the simple fact that the people from which we were buying the property are the ones that built it (the former owner was actually the contractor for the house) and I had seen him produce the paperwork during the inspection process, I knew that the files would be thorough and we would be able to really know all the details about the land and the structure.

While inclusion of this paperwork is usually assumed during a sale I didn’t want this seemingly small item overlooked so we included it anyway. Of course, now a couple of months have passed and while I know where everything is, I am still trying to properly organize everything into my filing cabinets… because I didn’t have enough files already. This seems to be an ongoing project and even with the headway that I have made during the sporadic bouts of organizing, there is obviously still a lot of work to do and the number of items that need to be filed just keeps getting bigger.

I guess the sheer number of files that I have is all about wanting to have as much information available to me as possible. There are a number of things that most people would consider trash or would simply digitize and destroy the physical copy. However, more often than not, I have utilized the amassed hoard of information that I have on hand to find different items or figure out dates on short notice. Additionally, I have gone through enough computers and digital storage devices to know that just because something is digitized doesn’t mean that it can’t be lost or destroyed. For me, having both available is the best option.

And that presents another issue. Well, in reality, it is simply a project that has to be completed. All of the files that we now have about the property need to be scanned and sorted for easy reference. We obviously have the physical papers on hand but, as stated above and what will be written about again in the near future, it is prudent to have both the physical and digital copies stored and easily retrievable. More so than some of the other documents I have crammed into my drawers, we really can’t afford to lose these. After all, it is not just a house as it was when we made an offer, this is our home.

Mortgage Monday: Just In Case

When my wife and I originally made an offer on our house one of the things that we made sure to include was a home warranty policy. While we didn’t expect to find anything during the inspections and we don’t anticipate any major issues in the near future you just never know what might happen. The last thing we wanted was to invest such a large amount of money into a home and soon thereafter have to increase our investment because the AC unit finally gave up or the well pump decided to take some time off.

Actually, the reasons are quite a bit more mundane than the major issues that one could face in that first year. Usually it is something as simple as an appliance acting up or a garage door opener that was older than you expected. These are the things that fall beyond the purview of the regular homeowner’s insurance policy and, just like insurance, you never know what might happen. The last thing that I want to happen is that we don’t have something covered, particularly during this first year, and then all of the sudden we have to spend thousands of dollars that we were hoping to keep in the bank.

I’d rather have it and not need it than need it and not have it… sounds like I’m referring to something else doesn’t it. But the same line of thought applies. I don’t want to be caught without it especially when it can impact the well-being and comfort of my family.

This is the just in case for those things that we can’t anticipate happening but, as we have heard and read about, they happen all of the time. So, I guess this could go back to my weekly checks that I referenced previously. Not only checking for the major things that everyone does like the roof and boiler but also the minor things like making sure the appliances sound the way that they should and that the garage door isn’t straining to open.

It really is a nominal cost or, as in our case, no cost option that brings a tremendous piece of mind to this first year in our new house. If something breaks we can take care of it right away and not worry about the financial impact that the repair or replacement might have. Rather than thinking and incessantly worrying, we can focus on enjoying our home and, more importantly, see the enjoyment on our son’s face when he is exploring the play room, looking outside, or watching the buggies as they sway down the road.

Mortgage Monday: The Other Monthly Checks

In addition to writing a check to the bank each month to slowly pay down our mortgage, there are also a variety of other checks that have to be taken care of on a monthly basis. Again, this is not something that I am used to doing but a monthly project that brings a sense of satisfaction as this is a home we now own. And while there are checks of the monetary kind that I regularly write, these are not the ones to which I am referring…

We want to make sure that we keep up on the maintenance of our home while also heading off any issues that may exist. This is why I tend to go around the house every once in a while, usually a few times per month, looking for little things (and big things too). Are the windows drafty? Are there any water stains? Is the heat working in all four zones? Are the gutters clear? Are any of the fixtures leaking? These are the kinds of questions that I try to ask myself as I walk about the house looking in corners and keeping an ear open to any sounds of water, pinging, clanking, etc.

While I don’t expect to find anything it is well worth the time to invest in these basic checks as we are still under warranty (part of our original deal during purchase) and any issues that come up would most likely be covered under that policy. Basically, it is all about making sure everything is running the way it should be. After all, this is no longer simply a place in which we are living as in the past, this is our home and we want to make sure that everything continues to be kept in great shape.

And, as the seasons and weather changes, I will be sure to check the same things as well as different systems around the house. The various filters are something that will be checked regularly but, as the weather warms, the air conditioning will also have to be looked at. We didn’t have any issues with inspections, only minor things here and there that were taken care of before we moved in, but we want to make sure that things are operational and that they are the right systems to have in place.

Maybe we will upgrade or change the air conditioning, heat, windows, flooring, etc. We will have to wait and see and continue to go through our check list every month. Then we will know what needs to be replaced (if anything), what we want to replace, and what we might consider doing in the future. So far everything is great but you never know… this is why I have to take care of so many checks each month.

Mortgage Monday: No More Rent

Since we’ve been together, my wife and I have always written a rent check every month. The amounts may have varied over the years but the one thing that remained constant was the fact that we didn’t own the place in which we lived. It is a rather disconcerting notion when, at the end of the year, you look back and see all of the money that you gave to someone else without having anything really to show for it. It is primarily because of this that we have been wanting to buy a place of our own for years.

While it has taken longer than expected and it had happened under circumstances that we both wish could have been different, we are no longer writing rent checks. Now we find ourselves flipping through the payment book sent to us from our bank knowing that with each page that we turn we own a little bit more of our home. And with each month we add just a little extra, as much as we can, in order to shorten that three decade commitment a little bit at a time.

It really is a different experience when writing these checks (actually, setting up the automatic payment and watching the funds evaporate from our account). There is a goal in mind with a clearly defined payment period. There is certainty and stability in the payments we are now making and, to a certain extent, we look forward to making these payments as each check or transfer is one less that we have to make in order to own our home in its entirety.

Owning our own house also allows for the freedom to change or keep things the same as we see fit. There are few limitations especially without the presence of a homeowner’s dictatorship/association. It is true that we have to maintain everything ourselves but we can also fix things ourselves without the potential repercussions from a landlord and we can chose who we want to do the work if we find it is beyond our limited knowledge and experience. We are able to make things right in our own way in our own time.

We also have the peace of mind knowing that we are staying in the same place. There is no lease and we don’t have to worry about our rent going up next year or the owner deciding that they no longer want to have tenants. We have a place that offers us permanence and stability for the two of us and, more importantly, for our son. This is the home where our son is going to grow up and that is an amazing feeling.

Mortgage Monday: Taking A Chance

This was the first attempt... really glad it fell through!

I am going to take a step back for a moment in this series and actually talk about a few months prior to us moving into the house. By the time the summer was coming to an end, my wife and I had a big decision that we had to make. Our lease was set to end today and while we had been looking at houses for some time, and we were under agreement on a property, there were no guarantees. While we usually take a more careful approach to situations, we decided to take a chance and give our notice that we will be not renewing our lease. So, when we sent our rent check in late August for the month of September, we included a note that, in accordance with our lease, we were not going to be renewing.

Technically, we had a place that, at the time, we thought we would be living but, as September slowly trudged on, that reality quickly dissolved and we soon found ourselves without a place to live come December. It was an interesting feeling of uncertainty and one that had us contemplating whether we should try to extend our lease but it was also freeing in the fact that it was one less thing to think about as we continued to search for a home. If anything, it certainly served as a motivator to get things done and step up our efforts to find a home.

Things do happen for a reason and our house hunt definitely proved that point. Within a week of terminating the agreement on the first house (based on inspections), we reached an agreement on a second, far superior, home. After talking with the bank the following week and shortening the escrow to 45 days, we knew that we would be moving and would be making the transition from a house to a home by the end of November. As it turns out, taking that chance in late August was going to pay off.

Contrary to the first ordeal which was rife with misleading statements and answers that didn’t match up with the facts and documents from the county, the process for the second house went as smooth as we could have hoped for and now that second house is now our home. No more renting, no more moving, and no more uncertainty about where we are going to be living this time next year or the year after. We are home.

House Hunting Update

Since my wife and I first started looking at houses (both online and in person) we have seen all different kinds of properties. Actually, maybe not all different kinds but a diverse range of quality, various prices (all within our pre-qualified range), and built at different times. It has been an experience and an education throughout. While there are a few things that now have on our checklist when walking through a property, I will say that this process has been a heck of a lot easier having a great realtor working for us (who just so happens to also be a brother).   

I guess the first thing that has been driven home again and again for us is that price doesn’t mean quality. Some of the houses that we walked through which were at the top of our range had some great features but there were a number of things that left a lot to be desired. At the same time, those houses well below our max budget may not have had some of the fantastic features but they were generally solid all around. So far all a higher price has meant is that the highlights will be there but they will also accentuate the shortfalls.

In many of those instances with the higher priced homes the biggest issue was found in the basement. This is why you must always look in the basement and study the walls of the foundation and the structure surrounding you in all six directions. There were a few houses that we considered putting offers in after having walked through the house but that thought quickly evaporated once we saw the large cracks and chunks missing from the foundation walls (and these houses were only 10-15 years old).

It just goes to show that you have to always look beyond the façade. Not considering the basic structure and foundation of the house but also looking past unfortunate paint selections and minor things that can be fixed within a couple hours over the weekend. While the former will prevent you from making the mistake of buying, the latter may prevent you from making the mistake of walking away.

However, the most important thing that we are constantly reminding ourselves during this long process is that just because it is a nice property doesn’t mean it is the right house for us. We have seen many properties both physically and virtually that would be great fits for people we know but they would never be something that we could call home. It is a long process that requires patience and persistence. And, in the end, I keep saying to myself that right now these are just houses. When we find the right one and move in then it will be a home.

Pulling Papers Together

 

When my wife and I decided to resume our house hunt this summer I knew that, at some point, I was going to have to spend a fairly significant amount of time in my office pulling all the documents together needed to apply for a mortgage. While the prequalification process was relatively painless and pretty straightforward the subsequent list of items needed seemed a little daunting when I first read through them in my email. There was nothing out of the ordinary and it could have been really quick had I been up to date with all my filing and organization but that certainly was not the case.

Following my conversation with the bank to get prequalified, I received the following list of items needed for underwriting:

1.)    Copies of drivers licenses and copy of a credit card (for ID purposes)

2.)    Copies of W2s from 2013 and 2014

3.)    Copies of full federal tax returns (form 1040) from 2013 and 2014

4.)    Copies of pay stubs from the most recent 30 days – (last 2 pay stubs if you are paid bi-weekly)

5.)    Copies of bank/investment account statement covering the most recent 2 months (most recent quarter for quarterly statement) – please include every page of the statement even if it is blank

6.)    Copy of fully executed agreement of sale (when available)

7.)    Copy of will and death decree to document inheritance

Again, not a problem if everything were neatly filed away and labeled. It took some time and a lot of patience but I was finally able to get everything ready to go. It was a time consuming process and one that could have probably been put off for a while but I wanted to be able to get things moving rather quickly as soon as we found our home.  

Of course, while pulling all of these items together I could help but think to myself that I should probably just put aside all the items I need to finally file our taxes this fall. There is a heck of a lot of overlap in the two lists and this mortgage process would be the perfect impetus for starting that tax file. And I do mean start as our taxes are an annual pain in the rear consisting of hundreds of pages of supporting documentation for the purpose of itemizing all our deductions. The mortgage underwriting documents are done but the tax documents still have a long way to go. Thankfully, I have a really comfortable office chair and my files are now in better change then they have been in months. I just hope I don’t have to break out the check book again!