Having rented housing since leaving the nest I grew up in, you can imagine what a big leap it was to decide to buy a home! Of course there are many
benefits to renting, but after 15 years of all the annoying condo commandos & crazy landlords I decided to lace up my big girl boots and jump on the
homeowner wagon. Some of the days have felt like I was riding bareback on a horse named “You’re Gonna Get Screwed” and some days I felt like I was queen
of the rodeo! Join me on my journey, I’m currently 8 days away from closing! Here are some lessons I’ve learned so far along the trail…
Last Straw! From the beginning...
That’s it! I’m buying a house. A house that’s all mine! Or at least 20% mine. Apparently the bank owns the rest and then sells it to another bank in lala land.
There’s a lot I didn’t know about buying a house, it’s probably a reason why 100 million Americans are not homeowners. It’s an overwhelming, jump through
hoops, extremely intimidating experience. But I’m no chicken. Turns out, I’m ballsier than most of the men & women I ended up doing business with. I gave
em hell for sure!
Step 1. Establish a budget. This requires you to choose a mortgage broker or bank. Choose CAREFULLY. Remember, every single person involved from
here on out makes money from this deal. I would absolutely not leave this up to a simple google search. Ask your friends and family for recommendations.
Shop around for the best rate, but be careful, some banks muddy the deal. They claim to have lower rates but full of with “points” or rebates. Rebates are for
suckas! You want the cleanest, lowest rate possible. Our broker tried to “lock us in” the 1st day. Uh, slow down cowboy, I’m a professional shopper and by the
time we shopped around and finally locked in, our rate was several half points lower! Market value does effect this but don’t feel pressured to get “locked in”
before shopping. Lesson: Lock & Load When Ready!
Step 2. Choose a realtor. Almost as important as choosing a bank. Again, do not leave this up to google reviews. Brokerage offices & big realtor firms have
large marketing budgets and can paint a VERY different picture of the service they offer vs. the service you get. Make sure to get a few referrals but do not,
under any circumstance, hire a friend or family for this service. You can use them as sounding boards for questions and concerns, but do not hire them.
This was MY BAD. A good realtor will make you feel like you are a priority, even though he/she has many other clients & open houses to run. They are busy.
Husslers. Don’t forget to actually interview them! They work for you so figure out how they work and how much they are working for! You want someone who
is a good negotiator but approaches the deal with professionalism. It’s actually harder to find than you may think. Lesson: LOVE Thy Realtor, NOT thy Friend.
Step 3. Negotiations. Do it right because after the signature is on there, there is no going back. You have to project your family & money. Next is the
inspection. Make sure the company is of quality! Remember, everyone is now making money from your deal! If a realtor or bank refers this service, they ARE
getting a kickback. A good inspection should take over an hour or longer depending on the size of home. If you don’t think he/she was thorough enough, call
another one or make them go back in! This is really your only chance under contract to see the guts of the house. Request remedies even if the inspection
comes back fine! A new fridge, hot water heater, or dishwasher isn’t a deal breaker to a smart seller and leaves you on top of the deal. If you don’t want to
request a specific appliance, then always make sure there is a home warranty included. These are 3rd party companies that for $500-$700 a year will cover
every appliance in your home, no matter what the age! Most of them only cost about $50 for a service call and they cover most repairs. They will even replace
the appliance under their program if they can’t fix it. Our house is 20+ years old, it would be foolish NOT to have this. Lesson: Be on top!
Step 4: Insurance. Good lord. The quick & easy version? Research insurance companies with the highest claim to payment rate. Don’t let insurance agents
over-insure you. If your home is appraised at $350,000 and is demolished, they aren’t giving you $350,000, even if you have it insured for that amount! My
mind literally EXPLODED when I learned this. You are literally just giving them money if you are over-insured. Coming from a rental, our “contents” are literally
half hand-me-downs & half junk. We didn’t need to insure our belongings for the standard $150,000 that was originally on the application. We lowered it to
$50,000 and our rate dropped by a third. Lesson: Move your ass-ests.
I could go on and on forever and I’m sure the experienced homeowner would tell you I missed a few things here. I just wanted to share the biggest lessons
from the pre-closing experience. After all the learning and researching, I’m grateful for the experience and am truly smarter because of it! My biggest lesson:
Do your research, ask 1,000,000 questions, and make them work for you! Yee-Haw!
TYBEE BEACHCOMBER | JUNE 2019 35
WTF Did I Just Buy?
Part 1 By Jenny Ellis