Saturday, September 29, 2007

just when you think you've arrived

So, at the closing, we found out that the warehouse used to be a mill for textiles that manufactured tapestries and heavy linens - I'd say back in the 50's and 60's. How it lasted this long without someone knocking it down is beyond me, but to think that we own a mini-hangar is mind-blowing.
So here's a couple keys for a successful closing: be ORGANIZED.

We set up a excel spreadsheet with all of the costs in it. We even added costs that weren't stated to be added.
A truth-in-lending statement from your loan officer is crucial to compare what you were told at the beginning from your loan instutution, and your good faith estimate. Even if they try this line, "Well, here at blah blah bank we usually dont give the TIL until you're signed on and paid your loan application fee.. " Tell them you'll take your business to the other potential lenders - they should bend. If not, actually follow through.
Remember this: your HUD 1 statement cannot lie to you. This is a document ordered by the government requiring that your lender show you exactly what you're getting into before your closing. I believe its 5 days prior to closing date.
We also continuously harrassed everyone involved with the process - I mean 4~5 calls a day to the attorney who would try her best to duck our calls. I mean getting your real estate agent's cell phone number on speed dial as well as their office number and email - and use all three simultaneously to get a message through - including text messaging at 12am when you have a question. Not kidding...you can't communicate "too much" in this process. Get a folder and separate it into all the categories that have to do with the property. One of those big 'ol accordion types that could carry the book of legislature with room to spare? yeah - one of those.
If you get to the stage right before closing and could gain access to the property with your agent, I recommend getting an architect or engineer friend go in and assess the place for you. Measure it, and give you a preliminary floor plan that could help you out in the near future. This could be done in conjunction with the survey which you have to do anyway. Then there's the home inspection, the title work - all this needs to be addressed WAY before closing. Getting an estimated cost on these is not impossible, although difficult to obtain. At the same time, try to get plumbers, electricians, and all the utility companies to go and take a look at their respective areas to give you estimates. Its usually free since their pining for your business anyway.

Theres always one thing you have to have in mind in this process: Almost everyone is going to make a lot of money off of your purchase, so for all intents and purposes - they're working for you. So if someone's getting paid for the service of delivering a home purchase experience to you - make them WORK for it and make them do it correctly and expeditiously.

Heres an example - I felt my title company was charging too much (internet info - gotta love the web!) so I went and found another company who instantaneously gave me an online quote that was about $300 less. When I told the original title company this - they lowered their price immediately. Just have a "take no prisoners" attitude.
So the day we walk in, we find ourselves feeling satisfaction for all but 10 minutes - just long enough to realize that we've just bought the world's largest fixer upper. Just when you think get there - you realize that ya haven't even started....








Tuesday, September 4, 2007

We're in! ....now what?

So the offer was re-accepted at 355k with 10k down. I know the down's not much, but hey - they accepted it. In most states this number for a 1 family seems ludicrous. In Joisey - well, its still ludicrous. Y'see - its not just a simple 1 family. Let me explain in pictures.





The main portion of the property is technically a 1 family. However, the building has been formatted on the interior to that of a 2 family, consisting of a 1 bedroom apt on the first floor,

and a 3~4 bedroom apt on the second and attic, equipped with a kitchen and full bathroom.


Now, thats not the kicker. Also located on the property is a 2,650sf warehouse. A gigantic loft warehouse.




As an architect, that rings on in your head a couple times and every gong conjures images of renovation, restoration, and an overall chance to make something happen. It really is amazing...



So, we have the offer accepted and we're out of attorney review and now what?



Well we only have to scramble and make sure we have about 17K for closing and down payment.