Folks have been buying and selling houses for centuries but this is my first time to do so. I have wanted a house for as long as I can remember but timing and circumstances haven’t worked out thus far. Now, as a friend said, I have hit the perfect storm of house buying. It all started fast and caught me off guard. I wasn’t expecting things to move so quickly. Then the slow down happened and I wasn’t expecting the tons of little things.
Now I have always heard that I will sign my name a bazillion times at closing. What I have never heard are the many forms you fill out and sign on the way to closing. It seems like a never ending trail of forms. At this rate I could save the paper, re-press it back into trees and build a house with what I would get.
I have also heard of closing costs and downpayment costs but oh my goodness it is the fees that will kill you. In the first meeting with the realtor where he explained how the process works I heard a lot of “you’ll pay that at closing” or “the seller covers that at closing.” Then the process started and I heard, “I need a check from you for x amount for x.” Then, “I need a check from you for x amount to cover y.” Now, “since this problem was revealed in the inspection I need a check from you to cover z.” I’ve been told that this kind of nickel and dime stuff is a part of homeownership because of maintenance and upkeep but I wasn’t ready for it in the actual buying process.
Having the money to cover the expenses isn’t the problem it is the not expecting them to come that is throwing me for a loop. Why can’t businesses just tell us what things cost without giving a price plus fees? I was looking up info on utilities today also and every one of them has a price plus fees so it is impossible to know ahead of time what my actual bottom line cost will be. The thing that will really irk me is that I will see the price and a fee breakdown when I order the service but then I will get the bill and it will have the price, fees, and taxes. How in the world do you work up a budget to plan for home ownership when you won’t know the real cost of stuff until after you own the home?
My solution so far has to been to work with percentages not real dollar amounts. I try to err on the high side. I pray that the things I am off on will balance out between those I shot high on and those I shot low on. I guess if it doesn’t work out the way I have it budgeted then I will have a nice house where I eat a lot of cereal, oatmeal, and ramon noodles.
“Hello, welcome to my new home. Could I get you a cup of water and a couple crackers?”
Finally, for those of you that keep asking, “Yes, I am excited.” I know it is hard to tell because I’m not jumping up and down but I have a few things on my mind like forms, fees, inspections, and closing. Then there is cleaning and packing my current place, deciding on a moving date, trying to figure out if I will paint and if so what colors. Do I want to get furniture now or wait until later? What do I really want my decorating style to be? Do I have a decorating style? How will the bikes be stored and can I pull off the idea in my head? How soon after moving do I want to start commuting by bike? Should I buy a new commuter bike or rather, when should I buy a new commuter bike?
I’m a nuts and bolts kinda thinker and as long as there are things to attend to or that hold my attention then my excitement will not be so evident. Besides, it ain’t mine until I sign on that final line and write that final check. When I hold the keys in my hand, then I will show my excitement.
3 Comments
8 July 2009 at 10:33 am
Since I just finished a year of working for a real estate loan closing company, I really don’t know why you have to pay all that either. I’m just glad I’m not doing those closings anymore.
8 July 2009 at 10:34 am
Actually, I might have enjoyed learning more about the process if the owner of the company hadn’t been “misappropriating” (did I spell that correctly?) funds. You might want to make sure you get a copy of that Insured Closing Letter!
8 July 2009 at 10:26 pm
I have gotten copies of everything with my name on it so far and plan to continue that through to the end.
The checks I complained about are standard stuff: inspector was paid at the time of the inspection, earnest money check, due to non functioning items an HVAC inspector will need to be paid, appraisal fee. A couple of these are credited to me at closing the others were just my responsibility. Repair or replacement items will fall to the seller.
Misappropriating will get you in trouble so don’t learn that part of business.