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!

Still Looking

Lately our weekends have been filled (at least half of each weekend) with our search to find a home. Our weeks have also been packed with numerous searches on various real estate websites trying to find that perfect place. We have also been looking to find properties that have the potential to be exactly what we want (at a lower price point of course). It has been, and continues to be, a long process.

While we have our list of things that we want in a home, we also have a strict budget. One that we determined not just by how much we want to spend but also how much we have been prequalified for by the bank. Fortunately, this part went relatively smoothly as both numbers ended up being about the same with the slightly higher figure coming from the lenders. It is nice to know what we actually have to work with when we look at properties rather than running the possibility of seeing something we like and wondering if we can get approved.

What we have also been running into here and there is the fact that we are getting toward the end of the real estate season so there isn’t as many listings and sometimes when we have expressed an interest in taking a closer look there is already an agreement in place. On the one hand it says a lot about the areas in which we are looking but on the other it is, at the very least, cause for the occasional moments of frustration. We can’t really do anything about it besides look at the others that are available and hope that we find what we are looking for.

However, we have introduced slight adjustments to our criteria which have opened up a number of other options. You never know what you might find that falls just shy of some of the things on our wish list (this is most notably found in the size of the property). On the other hand, one thing that we haven’t adjusted and will not adjust is the commute time for my wife. I guess the same can be said for everyone’s search to find a home… you have flexibility in some areas and you have to hold firm in others.

Overall, this is whole process is both exciting and frightening. We are both looking forward to owning our own place and finding our home but I am terrified of two very simple things. The first being the fact that we would be taking on around $200,000 of debt. Enough said about that one. The other is just part of my nature… if we agree on a deal and purchase a house, is there a better one out there, is there another place about to come on the market that would be a better fit for us. I guess we will have to just wait and see what we find but, for the most part, these are two things that I am eventually just going to have to accept and be happy with what we have. From beginning to end and afterward, it is not going to be easy.