My New York Home

The journey to home ownership of a first time buyer

[nysjenna]

D-Day

My contract has run out and I’ve been nervously checking my email like a High School senior anticipating an acceptance letter.

I’m physically at by desk at work but I simply cannot concentrate enough to get anything done.

I need to know something.

Anything.

That it is going to happen or that it’s not.

The waiting…

Then, my iPhone dings, it’s an email from Mitch.

Deep Breath,

‘Your contract has been extended to the 18th.’

[nysjenna]

The House That No One Knows About

Throughout this entire process, I’ve been incredibly evasive about exactly where the house is.

Friends and family have asked and before we were in contract, I told them Ulster County.

Seriously, all I was comfortable enough to give up was that it was somewhere in the 1161 square miles of one of New York State’s oldest counties.

Paranoid much?

Once the contract was signed, I felt a little more comfortable to say it was in the Village of Rosendale.

Job 38:11

Ok, I am a nervous mess.

It’s bad enough that I know where this house is and I also know that if this deal falls apart, every time I drive past it, my heart will break a little.

My friend Jess tried to reassure me that there are too many interested parties at this point for the deal to fall apart.

Skeptical isn’t even the word for it. I’m still not sharing the address until I’ve closed and I still don’t have a date for that.

And the 12th is 2 days away.

[nysjenna]

Persistence of Time

It seems like every step of this process is getting set up on a Friday and every week there seems to be another stumbling block that I can’t fix until Monday.

I’m HATE Fridays.

So far in the past few Fridays since my contract was signed, I’ve been informed via 5pm email that:

One more document is needed from my parents

My most recent signed tax returns are needed from me

My commitment letter from the bank (the actual mortgage money) cannot be processed because the computer system that processes mortgages for Ulster Savings and several other banks nationwide crashed. No Lie, it crashed?

AND… the FHA mortgage underwriter who is the final ‘Ok’ on my loan was taking his sweet time in processing my loan.

I’ve reached the point where the very sight of an email from Mitch Gordon, the very patient and very understanding real estate lawyer is causing my blood pressure to spike.

As if this wasn’t enough, an appraisal still needs to be scheduled, and from what Richard the mortgage broker keeps telling me, he’s taking his sweet time to do so.

We’re not gonna make this contract deadline and I’m gonna be screwed out of this house, I can feel it.

Feeling numb

[nysjenna]

When do you think you’ll get your commitment letter?

Mitch Gordon, Real Estate Lawyer

[nysjenna]

Even a Contract has a Shelf Life

I’m finally getting comfortable. I can finally take a breather.

I found my house, my offer was accepted (well below the asking price), we’re finally in contract and I’ve been pre-approved!

Silly girl.

I got another email from my lawyer, Mitch Gordon, ‘When do you think you’ll get your commitment letter?’

My whaaaaa?

I literally have no idea what Mitch was talking about? I thought I had given him all the necessary paperwork? What the hell is a commitment letter?

I was about to fire off an email back to Mitch with those very questions when I noticed the second line in the email he sent me.

‘Because your contract runs out on the 12th.’

Oh my God, of course the contract runs out!

Because I signed the contract a full 10 days before I even got pre-qualified…. I lost like 2 weeks in the process. The 12th was roughly 2 weeks away and once my contract expired (the one think keeping the seller from taking a higher offer from someone else, which her agent already proved she was willing to do) I was up shit’s creek with this deal.

Oh My God!

What’s worse is there’s nothing I can do!

The situation is completely out of my hands and in the banks control now. I have never felt so powerless.

My life, while living with my parents again, has literally gone into eternal pause and moving into my own space is when I could move on. Now that’s in jeopardy too?

[nysjenna]

Everything & the Kitchen Sink

The text from Nickie sat on my phone for a few minutes before I could even process the request.

After taking in the full size of this 3 bedroom home I’m fairly sure I’ll be living in soon, I realized I was moving from an urban one bedroom apartment.

Translation: I HAVE NO FURNITURE!!!!!

A few trips around the web and every time returning to IKEA, I quickly realized, to even begin to furnish this place I’d be doing it with the cheap stuff from the cheap store. Yeah you can buy some stuff nice from the Swedish designer, but I promised myself, grown-up Jenna was not going to have an all IKEA (and the cheap stuff from there is really cheap) home ever again! It was like renting, a part of my life I was ready to leave behind.

During my initial walk through, before I could really see the apartment, all I could see was its décor and it wasn’t my style.

BUT, daydreaming trips to Pinterest began to show me that old furniture can be made new again, and she had several good, solid pieces of furniture in the house. A creative eye, fresh coat of paint and some new hardware and I could breathe new life into her stuff!

I also realized, furnishing a home with the cheap stuff from IKEA, Target, Walmart you name it was going to cost a few thousand dollars for an ugly disappointment.

Hmmmm, $1500?

It’s an offer, it’s not insulting and it quickly checks something off my list.

No way!

The seller sent me a full list of my impulse purchase:

1 Sleeper Sofa

1 Kitchen Table & 4 Chairs

1 Bamboo Basket Chair

1 LazyBoy Recliner

1 Big Screen TV

1 Stereo System with 2 Large Speakers

1 King Size Bed, Frame, Mattress & Mattress Pad

1 Twin Size Bed, Frame, Mattress & Mattress Pad

1 Vintage Ethan Allan Desk & Chair

1 Fold Down Table

2 Loveseat Sofas, 1 is a Sleeper Love Seat

2 Dressers, 1 tall 1 wide

1 Cabinet (Free Standing)

2 Night Stands

8 Sets of Curtains

2 Shower Curtains

1 Globe and Stand

1 Mini Fridge

Pots and Pans

Shovels and Gardening Tools

3 Plastic Patio Chairs

1 Sewing Machine

‘…and a partridge in a pear tree’

Not too bad.

[nysjenna]

Borderline

I’m in contract for a house I love.

The inspector did not say ‘death trap’ or ‘money pit,’ at least not in my presence.

I’ve been pre-approved for a bank loan, so all that’s left is the actual mortgage.

*Deep Breath*

My mom finally got a chance to complete her belated taxes and I’ve turned them in along with everything else Richard Heese asked for to complete my loan application with the Ulster Savings. Richard started the application and things seem to be going swimmingly.

Richard mentioned something about an appraiser and insurance, and I’m not clear where these two fit into the sequence of events.

I’m already starting to miss RUPCO.

Richard mentioned that the FHA loan, like the USDA loan, requires a property appraisal and must determine things like the distance between the septic tank and the well. But when does this get done? Who is supposed to do it? Does all of this fall on me?

Richard also mentioned something about asking the town buildings inspector about getting a hold of a map from when the home was build that may be able to give us an idea of where they are and how far apart they are.

I’m already lost.

Feels like I’m going to lose my mind.

[nysjenna]

I’m not a fan of platitudes. I often find them empty banalities of a lazy gesture.

I know, harsh right?

They exist to give people something to say when they feel something should be said and there’s nothing really to say. 

Platitudes, like symbols only hold the meaning people subscribe to them, otherwise they’re meaningless.

With that in mind, LA artist (an amature philosopher?) Erada Svetlana’s tumblr of Daily Grit can offer a cacophony of random thoughts, or if the mood strikes you, as it did me, a fortuitous insight into my current condition.

Enjoy :)

[nysjenna]

With or Without You

I’ve known for a few weeks now that my USDA Direct Loan was not going to pan out for this house and for me to purchase it, I’d have to take a different route to secure financing, effectively ending my relationship with RUPCO.

And I knew I’d have to tell them that.

Breaking up is hard to do no matter how you do it, and for me it has always been a source of anxiety. It doesn’t feel good to tell someone you were ready to make ‘a go of it’ with, ‘I’ve found something better.’

But every so often it must be said.

RUPCO is an awesome organization and I never would have even entertained the thought of buying a house had I not heard of them. I really thought I’d be buying a house with a USDA Direct Loan and getting ‘saved’ by home improvement grants that could turn my diamond in the rough into something that just needs to be polished.

I committed myself to calling Frank Robusto when my iPhone rang, with a Kingston number.

It was Frank.

‘OK, just rip off the Band-Aid.’

I picked up the receiver and instantly remembered sitting down with Frank for the first time preparing to fill out all of the paperwork needed for USDA approval.

‘Just promise me, you’re not gonna drop this loan and take a different one,’ he said with half a smile on his face and half a serious tone in his voice, ‘We had somebody else get a USDA loan and then change their mind at the last minute. It’s like we did all that paperwork for nothing.’

Oh God, I feel terrible.

“Hey, Frank.”

“Hey Jenna. So did you decide what to do?”

“Yeah, I was actually planning on calling you. Um, I talked about it with my family and we decided to just take an FHA loan through our bank and go ahead and buy the house.”

“Oh, ok.”

“I’m sorry.”

“No, it’s ok. I could tell you really wanted it since you kept asking the USDA to re-run your loan eligibility numbers. And you sounded pretty down when they said ‘no’ the last time.”

“Yeah, and what solidified was that for me their criteria was a little too strict. I really didn’t think I was going to find a house I wanted to stay in long term that would meet their guidelines. And this was a house that felt like home.”

“Ok, well that makes sense, as long as you have a financial plan to make it work.”

“I do, and again, I’m so sorry. Once I started looking again [after the first time the USDA vetoed this property] I realized what you meant about working with people who fully understood the grant and loan products, but I really loved this house.”

“I understand.”

Then I thought, since I am tanking an FHA loan, that RUPCO recommended and I was going through Ulster Savings, a bank RUPCO worked with…

“I know I canceled my First Time Home Buyers matching funds eligibility when I closed my account to pay off my credit card bill, is there any chance I could still apply for the home improvement grant funds.”

“No. once you opt out of a loan, that’s it with us.”

Well that’s it. I’m officially out of the RUPCO loop.

From here on out I will have to rely on my mom, Nickie and my own wits to navigate the remaining avenues of this process. Oh, and from now on I’ll have to talk myself down from a ledge.

I did however, promise Frank I would send him a confirmation of the sale once I close. RUPCO still gets credit for helping a first time home owner, even if they, like me, decide to go it alone.

It was the right thing to do. I just wish if felt better.

[nysjenna]

This Is Why Your Rent Is Too Damn High

Fewer Americans are moving into homeownership, which means affordable rentals are getting more difficult to find.

[nysjenna]

This Map Shows the Hourly Wage You Need to Afford a 2-Bedroom Apartment in Your State

It highlights the mismatch between dipping job wages and soaring housing costs.

[nysjenna]

My New York Home turned 1 today!

[nysjenna]

In Contract

I finally got to contract. The ‘dream home’ is on its way to reality and I hope there’s no more surprises.

So far this process has brought out sides of me I didn’t even know where there like my Wayne Brady side

I must learn to relax.

[nysjenna]

Just One More Thing

We’re almost done getting me qualified for a mortgage.

I’ve been in constant contact with Nickie, getting last minute pdf’s of my projected tax figures and various other details about the property.

She’s really been great.

We were almost done when Richard says there’s still a few things he needs from my mom to process the mortgage including tax returns.

“Oh, that’s  a problem,” my mom says.

Jesus, can nothing go smoothly?

“We applied for an extension due to a health scare in the family, so I still have to file the taxes.”

Now I feel like crap for getting annoyed at my mom.

“And, now that the health scare is resolved, I have a trip booked for a week and I’m leaving tomorrow.”

“Oh man,” Richard winces, “I can’t process the loan without that.”

That’s it, I give. I’ve thrown everything I, and some of what my parents have, at this and it just isn’t working. I just…

“But I can still pre-approve you for now and that should get you to contract.”

[nysjenna]

No Way That Just Happened

I took the day off to deal with this, cause dammit, I’m getting a mortgage.

First thing in the morning, I log on to Ulster Savings website and type mortgage broker in the search field.

Liz Moeller was kind enough to give me a name but what if Richard Heese is out of town?

My reporter instincts (and this cluster $&*@ of a process) has taught me, always have a back-up plan.

I start cold calling brokers, including option #1, Richard.

Turns out Richard did have some time to meet with me that afternoon, so I immediately book the appointment and made plans to take my Mom along since already agreed to cosign on the loan.

*WHEW*

For the first time in a long time, I’m beginning to relax about this process.

My initial ‘what should I bring,’ phone call with Richard was incredibly reassuring; all he needed was a few previous pay stubs, my tax returns and bank statements. HOWEVER, because my family already banks with Ulster Savings anyway, he had all other pertinent information about us at his fingertips! Sure enough 2 o’clock rolls around and my mom and I meet with Richard in his Kingston office. My mom’s didn’t have any paperwork on her, but this loan’s for me. She’s just here to co-sign.

I start handing over all the paperwork and information Richard needs to crunch numbers and then we hit the first snag.

“Do you know what your credit score is?”

By now I could get that number tattooed on my shoulder I know it by heart, 780.

“Ok, just let me check…” Richard enters my information, “Ok, I’m showing your score is 730.”

WHAT?!?!?

How the hell did I lose 50 points? I don’t understand! When RUPCO ran my numbers for the USDA…

“Did you recently close an account?”

No way! In that moment I realized, the credit card I had, the one that had been active since college, the one I closed in a desperate attempt to lower my debt to income ratio… closing it dropped my score.

“It’s really not that bad Jenna.” Can everyone read panic on my face? Richard caringly leans over his desk to explain, even with a lower score, I’m nowhere near the danger zone. “You still have an A+ credit score. I wish more of my clients had scores this high.”

Nothing calms my nerves like a good ego stroke.

Richard explains that I’d be best suited for an FHA loan or a Federal Housing Administration loan.

NO WAY.

This is one of the loans and Ulster Savings IS one of the banks RUPCO offered in the first place!

Had I just applied for the FHA loan through RUPCO and set up my first time home buyers club account with Ulster Savings, I would still have access to home improvement grant money and $7,500 towards my closing costs!

Richard then tells me that and FHA loan does carry MIP or Mortgage Insurance Premium that will last the life of the loan. And while this program was also created to help lower income Americans (like myself) to afford a first home, it requires at least 3 ½ % down. We also have to roll in bank costs, the dreaded taxes, home owners insurance and closing costs. When it was all said and done we were putting down roughly $15,000. The same amount of money my parents were going to lend me to pay off my car loan.

Had I gone ahead with that plan, I still wouldn’t have qualified for the house and I wouldn’t have anything for an alternative mortgage!

[nysjenna]

a slight reprieve

Thursday morning, on the thruway, headed north to Albany for work. The phone rings.

“I got her to back off, they’re going with your bid, but we NEED to get a contract as soon as possible, so you need to get pre-approved even sooner.”

My speedometer says 78mph.

“See what I do is I get in there and I fight for my clients. Like tooth and nail, cause if she felt she could have gotten more money then she never should have taken your bid in the first place. It was below the asking price which was below the assessed value, you know what I mean?”

My speedometer says 81mph.

“Yeah, wow, Nickie, first, big BIG thank you for working on this and Liz gave me some contacts for brokers she things would be better suited to help me.”

“Wait, you’re not going with Liz?”

“Well I can’t because…”

“Cause this seller’s agent has proven that she’s pretty skiddish and I recommended Liz because she knows the agent and they’ve worked together before. I just don’t want to give her any reason to bolt, you know what I mean?”

“Yeah, but Liz just couldn’t do it and she highly recommended this guy so I think it’s safe. Worst case scenario, I’ll ask Liz to smooth things over with the sellers agent so she doesn’t freak out.”

“Good idea, and I think that’s a safe plan. There’s one more thing.”

My speedometer says 70mph?

“To accept your bid, which is way below asking price and because you’re getting 100% financing, they want you to put something down. So they’re asking that you cover her closing costs at $2,000.”

At this point, what the hell? After all I’ve been through to try and get this house what another $2,000?

Oh my God, did I just think that? I have no idea where that money is going to come from but sure why not?

“That’s good, I’ll let her know. Cause at the end of the day, this is still a really good deal.”

At the end of the day, I want it to be the end of this deal.

My speedometer says 75mph.

[nysjenna]

WTF

A few hours after my informative yet sobering phone call with Liz Moeller, I was headed into my after work Pilaties class.

Exercise always helps me think clearer and I am in desperate need of calm and clarity.

As I park my car in front of the studio and adjust the sports bra under my t-shirt, my phone rings.

It’s Nickie, my realtor?

“Hello?”

“So I just want to let you know where we are now.”

Her usually cheery London accent has an air of gloom about it.

“She’s taken a higher bidder.”

WHAT?!!??!?

Oh yeah. Even though my bid was accepted and my letter of fascination, aspiration and devotion to the property had both the seller and the real estate agent in tears, because I couldn’t get my money released for us to go to contract, the seller had no legal obligation to honor the accepted bid.

Someone else came along, with $14,000 more than me and they’ve decided to take that bid instead!

I’m running out of fight for his place. This shouldn’t be this hard, should it?

“What she done is totally unethical.”

I’m not gonna argue with that, but just as I’m ready to throw my hands up in the air, Nickie doubles down in the fight for the house.

Basically it goes like this. Nickie tells the seller’s agent that continuing to show a house you’ve accepted a bid on is unethical, bad form and something she’ll be telling other agents about.

The seller’s agent retorts that she can continue to show the house up to closing.

Nickie starts calling local real estate agents who all agree, while legal this is highly unethical and makes the sellers agent look treacherous and deceitful.

“So I just want you to know where we are cause at the end of the day, its unethical and it makes us all look bad.”

“Wow. OK, Nickie, thank you for handling this. Good-bye.”

I walked into Pilaties 5 minutes late, but I don’t need to stretch. I’m numb all over.