Couple
Purchases Home After Attending Housing Exposition:
Robert and Rebecca Morgan
Rob and Rebecca Morgan knew that one day, they would like to buy a home. What they did not realize is how soon that day would be. They assumed that owning a home would take: a large downpayment from a deep savings account; a long, stable work history; impeccable credit, and verification of all of the aforementioned. They eventually learned that all of these things were true to some degree, but not necessarily as they expected.
In order to better acquaint themselves with the process of buying a home, they decided to attend the Mon Valley Providers Council's 1998 Housing Expo in Turtle Creek. Not only did they learn some of the pertinent people and steps involved in home ownership, but they also had the opportunity to meet with several bank and mortgage representatives to discuss their personal situation. This helped to prepare them for an opportunity that was waiting just around the corner.
As it turned out, friends of theirs were relocating and wanted to sell their house quickly. The house seemed out of their price range, but they decided to take a look anyway. The house was everything they wanted, from the four bedrooms to the finished gameroom and sizable lot. They loved the house, and it seemed like it could be a good opportunity, so they decided to take the next step and apply for a mortgage loan.
After calling some of the mortgage providers that had been at the Expo, they settled on one who had been particularly helpful and supportive. The mortgage provider walked them step-by-step through the process. Along the way, they ran into some surprises. For example, they learned that even with a moderate income and given the price of the home in which they were interested, they were eligible for a Federal Housing Assistance (FHA) loan. They also learned that although Rob had been in his present job for only four months, they still met the job length requirements to obtain a mortgage because he had completed the probationary period. They learned that while their credit rating was good overall, it had some flaws in it that needed to be thoroughly explained before their rating was acceptable. Credit can be repaired or explained when there are modest flaws to be addressed. They learned that although they did not have the total down payment amount in savings, they could receive cash gifts from family and friends to help out.
It was frustrating to realize that every single piece of paperwork the mortgage lender needed required original signatures. This ruled out faxed documents and put Rob and Rebecca at the mercy of former employers and landlords who needed to send out original verifications in a timely fashion.
It was sometimes a struggle to work with the loan processor who was responsible for verifying all the application information. She seemed to move very slowly, and did not always handle the processing in the most efficient manner. "I can honestly say that the verification process and lining all of our ducks in a row was the scariest part of the home buying process. Thankfully, during the entire process, dealing with the sellers was fairly stress-free. They were friendly, helpful, patient, and while not agreeing to all of our ideas or proposals, they kept an open mind."
In the end, everything went smoothly, with the closing taking only about 45 minutes. Rob and Rebecca moved into their new home that night. "Pulling into our own driveway each evening, backyard grilling, Steeler games in the gameroom, and the lack of footsteps on our ceiling are among the best things about being a homeowner. In addition, the knowledge that the mortgage payments we make each month are contributing to our own equity, not some landlord's, makes homeownership a sound financial choice."
Broken toilets, a 1960's-era stove that emits enough heat to double as a furnace, and unstoppable sneezes while bagging 27 bags of leaves that accumulate during two weeks in the autumn also come with the new home. Nevertheless, Rob and Rebecca would certainly not have it any other way.
Rob has a few pieces of advice to offer anyone considering becoming a home owner. "Be prepared to experience disappointments, such as the seller not accepting your offer, the seller becoming obstinate, or the possibility of extra inspections or work to bring the house up to various requirements. Above all, educate yourself. Read books. Learn about interest rates, points, and different types of loans, go to the library, check with banks or other mortgage providers, attend a Mon Valley Providers Council Housing Expo, or check with your own community service center to see if a similar program is offered in your area."
Single
Mom Achieves Goal of Home Ownership:
Renee Marshall (name has been changed at her request)
Renee Marshall lived in an apartment with her three children and was tired of renting. She says, "I never thought I would own my own home. Once I started looking, I actually found that there were mortgages that cost less each month than my rent. I've been waiting to own my own home for too long." Renee heard about a program that made home ownership possible for individuals with lower incomes and decided to pursue it.
Renee found several houses that interested her and knew it was time to find out more about getting a mortgage. Through friends and co-workers, Renee decided to talk with a local bank. She was not sure what to expect. "I was nervous about getting a loan and wasn't sure I would get enough to buy a house." Renee talked to the credit counselor/mortgage originator who advised her to clear a few things off her credit report and save some money for the down payment and closing costs.
Renee quickly repaired her credit but had difficulty saving the money the bank said she needed. For several months Renee was unable to buy the house she wanted because she did not have enough money saved according to the first counselor. A few months further into the process, Renee found out that another local lender did not require as much cash, and that she had enough saved to proceed. This caused a two month delay in her home purchasing process
Renee applied for a mortgage with this bank, but because of the delay, the house she wanted was sold to someone else. Fortunately, Renee was shown another house that was larger than the original house and less expensive. Her mortgage was approved and a closing was scheduled. For Renee the process of applying for a mortgage and closing on a home took approximately two months. In May, 1998, Renee finally became a home owner
Once Renee and her kids moved in, they realized that a sky light window was broken and leaked into the kitchen. It was the responsibility of the owner to have it repaired before closing. The window had been repaired, but nothing seemed to stop the leak adequately. Renee grew frustrated. Fixing the window was now her responsibility.
The problem with the window was eventually resolved, but only after many attempts. Renee admits that owning a home has at times been frustrating for her. She is learning daily what it means to own a home. She relies on advice from friends, family and co-workers to help her maintain her home
Renee's advice is to, "shop around for the mortgage, each bank is different. Ask someone you trust about mortgage rates and fees." Renee says the best thing about owning a home is that, "my kids and I are here to stay. They will still go to the same school and I am close to my job. I don't have to worry about moving, because I don't rent anymore. And no more landlords."
Home Ownership is a wonderful thing, but entails a lot of responsibility. If you are considering purchasing a home, knowledge and information are your main tools. While obstacles may seem to pop up everywhere you look and the process seems confusing, gaining information and accessing resources are the keys to making your way successfully through the process and into your new home.
