Buyer's Journal

[Anonymous]

Because I'm often asked about this road I'm on I thought I'd start a thread.

To recap the process so far-

After 37 years in my present home we are building new.  There is no mortgage on our home, but all things change, and we feel its time to move on.  We are at a point in our lives where we can be a little indulgent.  The only way we leave here is for this new development, that has all the anemities we desire.  Our agent seems down to earth, and a good guy.  Have gotten to know him well last few months, we like him, but we fully understand this is business, and his job is to make the company money, and to sell houses.  This is America and capitalism, its always about the money LOL.  Thats a good thing.  I don't expect them to lose money on my transaction, but I don't want them to get rich off me either.  

We picked out our lot, floor plan in late Oct.  I paid 1000 in earnest money.  Filled out the app on Halloween.  The mortgage company is a preferred lender of the builder.  Good APR, they pay all closing costs and fees.  LO called next day and advised good to go, but needed supporting docs, I complied.  A week later she called back and advised us if we could get our score up 30 pts we could save money with more options available to us.  She said they have someone in the company that can do that free of charge.  This person looked over the file and submitted a game plan for us.  Bascially our score was hurt by lack of recent revolving credit.  We have 2 cards we seldom use.  I was instructed to apply for 2 more cards, and use wisely, keeping balances low.  I did that, and scores went up 28-30 pts very quickly across the board.  It was great advice.

Our contract has the contingency of selling my present home.  It is on the market.  I had to send a copy of the sales contract to the money people.

Went to the design studio in mid Nov. to pick out the details.  Good experience.

Agent called a week later to update.  As we spoke, the lot was being cleared and prepped.

After that things went dark.  We only live a few miles from the development, so going by there not a big deal.  No activity last 2 weeks of Dec, but it was the holidays and didn't expect any.  Did meet a few of our soon to be neighbors.  Nice folks, and all seemed happy in their homes and life in the development.  In fact their glowing reports made me think they'd been bought off.  A few had some minor issues, but nothing that made them regret buying from this builder or living in the community.

Early Jan.  There are many houses near me for sale.  It is a buyers market for sure.  Many have been on the market a year or more.  I decided I needed a plan B.  I wanted to explore keeping my home, pay just 3.5-5% down, move in, and deal with my present home on my schedule.  It doesn't cost me anything.  Annual taxes are 222 dollars, and the homeowners is 900 annually.  All the expense involved living here.  I have the $$$ for the min. DP, After running the numbers just not that big a deal paying 3.5 down compared to 25%, especially after the new PMI rules coming out.  I think I'd rather sell and put money in the bank.

The other aspect of this is- I won't get caught homeless.  I'm terrified of selling my house, moving out, and something happen on the other end and deal falls through.  Yes, I'd have some money in the bank, but I'd be living in a apt, and out of house we deepley loved.  I was losing sleep on that scenario.

Not heard anything from the LO in a month. But I understood my house is months down the road, and I'm sure she has files on her desk that were much more pressing.

I want to do plan B.  I called the agent and asked him to run that buy the LO.  My numbers said it would not affect my ratios by not selling my home.  But my numbers and her numbers could be different.  Two days later he called and said LO didn't see a problem with that, but I needed to send in the support docs for the homeowners and insurance on the home.  I had that papework on hand, and dropped it by the model home office yesterday.  He also told me they a updated credit run would not happen to further down the road on this.  The building supervisior was also in the office and said they would form up the slab next few days.  At this time a formal meeting was set up with the builder for Jan 14.  The purpose being make sure everyone is on the same page and what my expectations were.  He would go over the plans page by page, and take any questions.  The meeting is mandatory per contract.

My home is still on the market, but not trying very hard to sell.  The fact I don't have a payment on it, allows me to be flexiable.  Heck, I might not ever sell it, because I'm so attached to it.  After I move I just might keep it around for a safety net.  Things don't work it, I know it would be here waiting for me mortgage free. LOL.  I might even ride over here and just hang out somedays LOL.  Put me a few chairs in here, TV and make it my hang out.  Gotta a garage to keep my motorycles too.  Only 10 minutes from my new place.  I say this only slight tongue in cheek.  This is huge for us.  We make a good living, all calculators say we can do this with plenty of room, but the thought of a 4 figure house payment is daunting, our last housepayment was 6 years ago, and then it was only 322 dollars.  But our new home is a dream place for sure.  I'm sure once we're moved in and living, these thoughts will pass.

I'll use this thread to update.  For now I gotta get ready for the builders meeting.

[frugalQ]

thanks for the synopsis.  I am following your story for sure!!  

Good luck!

[Anonymous]

We had a 3 hour meeting with guy who is gonna be in charge of our build.  I'd met him before, but this was our first formal meeting.  My wife works in the office that deals with permits and water meters, and she met him when he came in to apply for that stuff.

He is local, and sincere.  He's built 2 houses in the community so far.  I checked with the occupants of those homes earlier, and both said he did a good job.  One summed up with, "professional" all I needed to know.

With plans spread all over the table we went page by page.  He explained how things would flow.  He went line by line to make sure what we ordered is actually in his plans.  I had my copy of the contract in hand.

"Line 15, you want a rain head shower in the master bath?" 

"Yes, I don't care if ain't gotta roof, just make sure you get my rain head in."

"Got it"

We went over possible problems.  One being a corner fireplace, brick hearth.  "That won't be easy, already not much room between the mantel and window."

Line by line we went over and compared my contract to his work orders.  Confusion on the master bedroom closet flooring.  The room is hardwood but the closet is not specified.  "why would they put carpet in the closet with hardwood in the room?"  "They probably won't, but it is not specified on the contract, I'll have to call it in and check it"

I was impressed with his attention to detail.  One of the biggest head scratchers was where to place the floor outlets.  They are not standard in this model.  Its kinda hard to do that looking at plans.  "How many feet from this wall ya reckon?"  "I dunno, depends on the length of the couch no?"  "Well yeah"  We skipped over it.  I told him I'm friends with my soon to be neighbor, she has the same floor plan.  My plan is to go see her and take the actual measurements., with furniture in place.  Her couch and mine not that different LOL.

At the end I told him not in a big rush, "take your time and do it right."  He said he appreciated that, but his boss wants it finished in by end of March.  I just don't see that happening.

He has 2 more to build in the community along with mine.  I told him I was concerned about that.  He said he understood that but one house is just 2 lots down from mine, and the other is 2 blocks.  "Its not like I'm in another city, I can handle it."

He gave me his number, "you call me anytime you want."  "That door works both ways, if you even think you need something checked you call me, even it means a delay to get clarification, I'm not worried about that."

He advised the slab would be poured in just a few days and the real work will begin.

We left the meeting and had a late lunch at 5 Guys.  Awesome.

All in all a good day.

[Anonymous]

Last week they poured the foundation, and blocked it.  The weather has been bad, but they worked over a recent weekend to make it up.  It was rainy and cold many days in Jan. (well cold by Ala standards).  Temps in the 40s not much gets done around here.  Not been touched in a week.  The other 2 builds in the same development are at the same juncture, so I don't feel slighted.

They gotta prep the ground inside the blocks, then the plumbers have to come in and do their thing.  The builder thinks they can get the slab poured soon, weather permitting.

I stopped by the office yesterday to drop off the 2014 W2s.  The agent can scan them directly into the LO inbox.  He advised the projected closing date as April 30.  My guess is add 2 weeks to that.  Our income is 11k to the better than 2013, so I was anxious to get the new numbers in.  I have completd my 2014 fed taxes but don't plain to submit them till summer.  Gonna apply for extension LOL.  I'm gonna owe them 2500 and some change.

As a special request, we asked for those gas light things on each side of the front door instead of the standard electric.  That is not something they normally do, but our agent (helpful guy) said he'd work on it.  Yesterday he emailed us a few options to look over.  "Look these over, pick one, and I'll run it buy our purchasing people."  So were thinking its a go.  No telling what we're gonna pay though, I'm sure they're gonna make some money on it.  I know we could add that on after we move in, but running the gas lines in construction gonna be a lot easier.  I'd like to just cut the check for that work outside the contract, not sure how that works.

I was advised they wanted to run the credit report again to see the new numbers.  We needed about 30 pts to get over the top and get the best APR.  The intial report is closing in on 90 days.  I told the credit coach to hold off a few more days as I just paid off the balance on Chase Freedom, and wanted it to report as 0.   She said no problem but let her know when.

We still don't know if we're goin FHA or conventional, depends if we get our current home sold.  It has not been shown in 3 weeks.  Plan B we rent it out, or just move and work on selling it when we get in the new place.

And thats the latest.

[Anonymous]

Hello

Congratulations on building your new home.  My question is, I did not know that you can wait and decide on which type of loan that you want FHA or Conventional.  I thought that this had to be decided before the home is built.  I am not knowledgable on this stuff.  Please enlighten me.

[Anonymous]

After a few days absence, I went by the site yesterday, and stopped in the office.  I only live a few minutes from the development.  I said I wasn't going by, but I was out on my motorcycle, and said, "what the heck."

The community only had 30 lots.  It is location, location, location.  Nestled away in the east side of the city, it is bordered on 2 sides by a nationaly regarded PGA golf course.  The remaining 2 are meadows and woods.  We are literally 1 minute (by car) away from the city's best shopping and dining.  It is rare you find such seclusion and privacy in the heart of a city's best amenties.  Count us lucky.

We paid a extra 8k for a lot that touches a meadow, and beyond that, fairways and hills of the gold course.  It was a bunch of money but we felt it was worth it.  Base price of the home was 229k, add the lot price, stuff we picked out at the design studio and the price went to 249 and some change.  But the house is loaded with the little details that make it unique.  Wood floors entire first floor (standard is not in master) crown molding through out, patio pad in rear, rain head shower, all tile showers, floor plugs, upgraded granite, tankless water heater.  Much of the money went to the kitchen.  Cabinets upgraded.  Wife had to have that spin around thing in the cabinet.  Under shelf lighting.  It does not take long to run up the price of a house.  The home came with many upgrades as the standard, and builder incentives, without price would be 260 at least.  It is 2100 sq ft.  The smallest model in the community.  It favors empty nest folks like us.

My house and 2 others are under construction.  All 3 the same model, different colors.  I cruised through on my bike and saw house #3 slab being poured, and my lot was now prepped and plumbed in.  I saw the builder super and stopped to check in.  He said my slab was due to pour Friday, but could be Monday, depending what happens with house #2 located 2 lots from mine.  His was the last available lot that touched the golf course and meadow.

The agent drove up from the office and stopped to chat.  He advised me the gas lights we requested were good to go.  "How much?"  "Purchasing people quoted a 200 dollar upgrade, from electric.  The gas lights are now a option upgrade in the design studio.  They said you had a good idea on that."  "See, I know stuff, the theme of this community is old south, Charleston style, gas lights fit that kinda house, I like the way the flicker LOL."

"come by the office on your way out"

"ok"

I spoke more with the builder as the crews got ready to pour the slab on lot #2, but I felt like I was in the way so moved on to the office.

I walked in saying, "watcha got?"

"They gave me a projected closing date of April 30th"

I replied, "well I'm gonna add 2 weeks to that, but we'll see"

"any movement on your house?"

"none whatsoever, I'm going forward with plan B."  Which is move in with 3.5 down and worry about my present home down the road.  There is no mortgage on the house, so I can take however long I want.  But the cash out of it would help ALOT.  My heart wants to keep it because I have a emotional attachement to it.  I have 3 motorcycles and the garage could come in handy.  My new home is only 8 minutes away.  I mean you have millions of people paying couple hundred a month on a storage shed.  

I hope by the end of the day I gotta slab.

One of the things I learned from this community is wild range of housing costs throughout the country.  Alabama for sure has negatives, but cost of living is not one.  A guy can live pretty well on 100k a year around here.  My guess is many parts of the country my new home would cost 1 million dollars, in same kind of location in a community near the beltway, northeast, or west coast.  My tax rate is lowest county in a state with the lowest property tax in the country.  Annual tax on the house 620 dollars A YEAR.  Insurance is about 700 a year.  So taxes and insurane are about 80 a month to the payment?  

Current tax on my present home is 221 dollars a year LOL.

My loan is FHA, but plan to refi out in a couple of years.

[frugalQ]

BamaGuy, 4/30 will be here before you know it!

Once they pour the slab, everything moves so fast!  you realize you are only 2 1/2 months away from closing!  Exciting times!!!  I hope you and your wife are taking pics.  Once you get settled in, it will be great to see the progression from dirt to home!

Like you, we live less than 5 mins from our new home...and i pass it every day on my way to work.  I have taken pics starting from the day we signed the contract up until yesterday after they layed the sod.  it's amazing how different the land looks from start to finish.

[Anonymous]

That's a good idea.

[Anonymous]

My agent sent me a email to come by the office yesterday to sign some papers concerning the removal of the contingency in the contract I sell my house.  I advised him I was going forward no matter, if they money people will float the note with 3.5 down.  The LO called me last week and said that'll work.  After several months I'm now friends with the LO, sales agent, and building super.  All good people with sense of humor. She called and said,

"You don't have more to pay down?'

"not right now"

"Why not?"

"Cuz I like to spend"

"LOL"

"Look here, just tell me how much y'all need at the closing and I'll be there, even if I gotta sell sumptin off"

"ok go by the office, I'll send Stan the attachment you need to sign, your wife needs to sign it too."

"But shes at work the other side of town"

"I'm sure you can figure something out LOL"

I only live a few minutes from my new house.  The model home also serves as the office, located in the front of community.  The unit is impeccable, finely staged with a lot of stuff you won't find in the standard build in the community.  We all know how that stuff works.  Overwhelm the potential buyer with all that and next thing you know he's signing his life away.

I drove by the lot.  Prepped and ready to pour slab.  The other 2 builds have slabs and a crew is even framing one.  Mine looks neglected, but thats ok, let them learn on the other 2 before doing mine.  All 3 same model, just different colors and options.

Stan greeted me when I walked in.  I asked,  "Did you get the papers from Cindy?"

"I did, and I need ya to confirm the gas light selection, been some confusion"  He pulled up the stuff on the light.   "Tell me which one it is?"  "Gonna be that one right there."  "Are you sure?"

"no, but it'll work"

"reckon you oughta ask your wife?"

"Why?  She won't notice if not the right one, she'll want me to ride back across town to show her the pics again too much trouble"

"look it, we gotta have her sig on these docs, so you're going down there anyway, get her to check it out.  I don't want her mad with me, when the wrong unit delivers"

Perturbed, I drove back across town to my wife's office (20 min).  But not before stopping at the Wendy's down the street from her office to pick up a Frosty.  One for me and her.  Went in the front door and met the young lady at the front desk.

"Is she busy?"

"On the phone I think, just go on back there"

Down the hall I went, papers in hand.  Door was open, and on the phone she was.  She grabbed her Frosty and smiled.

"lemme call ya back"

"here, sign these papers"

"what am I signing?"

"lifting the contigency of selling our house, then look at this and tell me if that is the correct light"

"NO, NO, NO, that ain't it!"

"See I told them I better come down here and get it checked out,"  Looking like the good guy.

She pulled up the email with the options and pics.  "This is it"

"Looks the same to me, but print it out"

I left and made the drive back to the community and turned the paperwork in.  Including the CORRECT gas light pick.

A few days ago the credit coach emailed me and advised she needed to run the credit report again, I gave her the go ahead. The clock had run out on the first pull.  She notified me yesterday my score was up 35 pts, and I was closing in on the needed 740, but she tempered that with, "we've done all the quick fixes, nothing left to do but let time work for us"

"so we're gonna garden?"

"do what?"

"Garden, that what they call it on Myfico when a joker quits doing stuff"

"never heard it called that before"

The score she pulled and my mid fico score 8 are within 2 pts, for y'all wanting to know.  This should be the last HP, with a projected 4-30 closing.

I guess I'm gonna ride back out there today and see if they're pouring my slab.

[SamsungHDTV]

---

 "so we're gonna garden?"

"do what?"

"Garden, that what they call it on Myfico when a joker quits doing stuff"

"never heard it called that before"

---

I laughed out loud in a quiet corner cubicle. Someone might think I'm crazy.

Great journal, love that you're including dialog. Learning a lot as well. I'm looking to buy my first home in a year.