Since we've officially closed and are now (temporary) landlords, I feel like I can finally tell the house story. I've been keeping quiet because I've been waiting for the other shoe to drop, but everything worked out.
Let me preface the story with this fact: a month and a half ago, we had no plans to buy a home. In fact, I discussed here about our plans to spend a year in a place to give us time to save up money and really look for a home we loved. About a week after we moved, one of the lenders we'd spoken with told us that the 2 year employment period of commission-based employees was flexible. It was a military-focused lending institution, and since DH had 1.5 yrs under his belt and was in school the remaining time, they could get a waiver for the 2 yr. requirement. We went ahead and applied for kicks and ended up with a $400k approval in our hands.
For anyone familiar with the DMV area, it's REALLY difficult to find single family homes in a decent location under half a million. So even with the approval, we figured we'd start looking, but likely would have to do some additional mortgage lender shopping once we hit the 2 yr. mark at DH's company.
We started by looking at Zillow and reaching out to DH's family friend who is trusted realtor (she helped us in looking for the place we're currently in). She told us that of the 6 homes we'd wanted to take a look at from Zillow, only 2 were actually available. We went on a Thursday to look at the one we really liked. It was even better in person. For a 30 year old home, the house had only been through 2 owners, and these people had really taken care of it. All appliances were under 5 yrs. old. And there was storage/shelving everywhere. They'd also done some neat quirky things like turning the area under the stairs into a storage closet and installing a laundry chute from the master bedroom to the utility room in the basement. It had a sunroom and a deck and a patio (perfect for a hot tub) and (our only requirement) a HUGE backyard. I loved the house, but was really hesitant to admit it because 1) it was the first house we saw and 2) it was bumping right up against our $400k limit.
After that first house decided to look at a house we'd seen around the corner that was for sale. It had been on our Zillow list, but hadn't made the short list of homes we wanted to see. We were not impressed. The first turnoff was the 4 or 5 huge hornets hovering around the tree in the backyard. From there, it just got worse. The floor plan felt much more stifling, it wasn't kept up as well, and to top it all off, it was more expensive than the first place.
At the end of the day, we couldn't stop thinking about the house, so we decided to ask his parents to look at it. DH's dad is a contractor, so he'd be able to tell us if it was in as good a shape as it seemed. I was also hoping his mom would talk us away from the ledge. She even told us at dinner the evening before they saw it that they'd look at 30-something homes before committing (although they knew instantly that the one was it). The next morning, they made it through the living room and kitchen before they turned around and told us we'd be crazy not to take the house (so much for that...).
I spoke with the realtor to get a quick idea of the numbers. I knew I could pull from my 401k, but even with that, we might be short. DH's parents graciously agreed to help us, and by Monday morning, we were under contract.
Yesterday, we closed. However, the sellers have asked to rent back from us until the end of October. So now, we wait to move in.
The good news is that with the 60-day notice needed to vacate our current contract, we should have little (if any) overlap in rents/mortgages.
DH and I are super excited to get into our home. We already have some basic ideas, but the house is essentially live-in ready. We do know that one of our first big improvements will be to fence in the backyard. This will allow us to let the puppies run freely and give us some privacy once we get the hot tub (can you tell I really, really want a hot tub?).
Speaking of hot tubs...I joked about it at the end of our closing just to keep it fresh in DH's mind. Well, our realtor chimes in and says 'I actually just did a quote for a hot tub removal. In fact, your dad (DH's contractor dad) is doing some work on the place and will probably be the one to remove it. I think it's in good shape if you guys want it.' Uhhh....of course we do!! DH's dad saw it today, and said it definitely looks like it's in good shape, so the plan is to see if it'll fit in his truck and then his parents would keep it at their place until we move in. Score!!!
Obviously this will mean some very different things for our finances, so updates on that coming soon.
The whole house story...and a potential hot tub
September 21st, 2016 at 07:07 pm
September 21st, 2016 at 10:41 pm 1474494077
September 21st, 2016 at 10:44 pm 1474494263
September 21st, 2016 at 11:22 pm 1474496554
September 21st, 2016 at 11:28 pm 1474496927
If you're willing to share details, many of us may be able to make suggestions to help keep expenses from spinning out of control as you experienced with wedding costs. There are so many costs associated with moving like utility fees, rentals, feeding helpers and problem solving expenses. As a new bride it's so tempting to rush to decorate without a long term, comprehensive plan and that action can truly fling you off track for years. Sending much best wishes, looking forward to pictures.
September 22nd, 2016 at 12:44 am 1474501470
September 22nd, 2016 at 02:49 am 1474508986
September 22nd, 2016 at 04:21 pm 1474557699
September 22nd, 2016 at 07:19 pm 1474568363
My 1st suggest is starting immediately, print out an anticipated budget and live that budget like you're already in your new home. Check to make sure you have 30 days 'grace,' what date is your PTI+ mortgage insurance + household insurance due. *[PTI Mortgage,Taxes,Interest] Your utility providers can give you a summary or at least an average for electric, heat/gas, water, sewerage, trash + cable, internet, cell. You will need to factor in disconnect/reconnect charges and how each provider expects payment.
Suggestion #2. Inventory your pantry, fridge & freezer. List meals that can be created with food at hand plus as few additions as possible. Having a meal plan is a huge cost avoidance. 2nd, It's a big hassle to move food items and make instant decisions for placement in your house. Make a pact with DH that meals are home based, budget for eating out ZERO in this interim.
#3, I suggest you begin packing. 1st it season change out so summer garb can be the starting point. As you go through the process...anything not worn, not used, not needed is a target to sell, donate or trash as appropriate. It helps to pretend you are camping, what is the minimum you can manage with between today and moving day? Get boxes from liquor stores for books, bthrm and foods. No extra costs if avoidable no surprisesb
September 24th, 2016 at 04:16 am 1474686974