Lessons on Buying a House: The Latest Update, and Even Better–A Mortgage Calculator!

cartoon houseThis is going to be short; it’s past bedtime, but here’s where everything stands.  Last Thursday, the offer contract finally got the buyers’ signatures and my final signature on one point that I finally caved in on–the number of days on the termination option.  I wanted 14, but they only would go for 10.  As one of my friends said, “Don’t sweat the small stuff.”  It really wasn’t such a big deal, anyway so far.

Fortunately, I was able to get an inspector, who had been recommended by a colleague, to do that job on Saturday.  Also, fortunately, unlike the first agent I had, who had also been recommended by a friend, the inspector turned out to be great.  I went out and pretty much stayed by his side for most of the 3-hour inspection.  He was both informative and helpful, showing me not only problem areas, but also making suggestions for various types of maintenance to keep up the house.  He had no problem answering my questions, even, I suppose, as naive as some of them probably were.

There weren’t too many surprises because most of the problem areas I or my agent had spotted on two previous visits to the house.  A number of problems relate to electrical aspects, because the current owners seemed to have done a lot of jerry-rigging of various electrical lines and connections, especially in the garage and to some “ambient” lighting outside, but there inside electrical problems as well.  There were quite a variety of other issues, maybe the biggest one being the roof, which is getting toward the end of its life.  Even so, the inspector told me it wasn’t going to leak.  That means it’s something that I won’t have to do right away.

I was pretty beat (and feeling kind of beat up too) Saturday after the inspection; there was a lot of information to take in, and I seemed to be able to think about just the problems, even though there are so many things about this house that I really like, especially, the upstairs bedrooms and the 2 and 1/2 baths.  Yeah, one guy with 2 and 1/2 baths!  What a deal!

Today my agent called and wanted to talk about the inspection.  I thought, “Oh, no, there’s some problem.”  However, when I got to his office, he told me that the sellers’ agent had been pretty amenable to some of the things that we had previously wanted, so we made a list of repairs that I want to be done, and we made an addendum to the original paperwork.  Hopefully, the owners will agree to repair or pay for the repair of some of these, and that will be just that much less I will have to worry about doing or paying someone to do.

My agent recommended also doing a termite inspection, but he is also going to ask the other agent about what has been done previously.  Then the “biggie”–the appraisal.  The finance company has to get a VA-approved appraiser to do it, and, of course, that’s something I have to pay for.  If the appraisal all works out OK–meaning the house is valued at more or at least the amount of money I am borrowing to buy the house–then basically, everything will be a go.  The last thing will be a survey, something else I have to pay for, but which is required by the title company.

Sometime soon, my finance company will give me a “good faith estimate” of what my total loan will be, what remaining closing costs I’ll have, and what my monthly payment will be.  I’ve already got a quote for the homeowner’s insurance and it’s less than I had expected, so that will make my monthly payment a bit lower than I had thought.

If you’re new to this as I am, here’s what’s included in monthly payment:  payment on the actual loan (principal and interest), taxes on the property, including any Homeowners Association fees; homeowner’s insurance, and PMI (which is a type of loan insurance that lenders require).  However, with a VA loan, there is no PMI, because that is actually what the VA is doing–insuring your loan to the lender.  On the other hand, there is a VA funding fee, which is paid to the government and now is at 2 percent.

Here’s is the mortgage calculator that I have been using.  It has really come in handy!

Sorry I haven’t been posting much on here, but there’s too much mental and emotional energy being expended in all this to have much left over for blogging.

OK, so maybe that wasn’t so short.

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