Homebuying: Week 1

Last week, I got down to business and started thinking seriously about going through the home buying process.  I called a realtor and a mortgage banker and began to do the real work.  Here are some results:

The Realtor:  Jeff Carpineta.  I've heard from various friends that Jeff is "the man."  After meeting with him for a couple of hours on Friday morning, I have to agree.  After talking with him, it's easy to understand why a dozen or more of my friends have worked with and recommend him.  Jeff and I met at the Rocket Cat and he gave me the basic overview of the home buying process.  He wants his clients to be educate before they begin anything, which I respect.  I learned a lot: where money comes from, how to find a good home, the relationship between buyers, sellers, banks, and realtors, ect.  Jeff was also willing to show me houses before I was pre-qualified, which is rare.  He's incredibly optimistic, and believes that if you can get approved and gather a mere 3.5% of the purchase price, you can buy a home.  Lastly, Jeff is motivated; he thinks that I can be through this process in two months.

The Mortgage Banker: I've talked to two different people on recommendations.  I'm glad that I went to more than one person because my second pre-approval was a $10,000 increase over the first.  The second person I talked to seemed to be pretty knowledgeable of city and federal programs that will allow me to get a lower interest rate.  I'll talk more about this person as he/she become more important down the road.  At this point, the mortgage banker has approved me for the price range that I am ideally looking at, which is perfect.

Things I've learned so far.  

1) When talking about interest rates, it should be at zero points. That way, you are able to make a more accurate comparison.  

2) Credit scores are annoyingly important.  I had one account go to collections four years ago that is bringing down my score. Pay your bills on time. 

3) Talk to as many people as you need to until you find someone that makes you comfortable.  This is a huge decision and process; you want to go through it with someone you like. 

4) This weekend a $8,000 refundable tax credit was passed as part of the stimulus bill for first time homebuyers.  That means that if I buy a home before Nov 30 of this year, I'll have a big fat tax refund come April 2010.

I could write more, but I want to keep these posts manageable.  I hope to keep doing updates each week as I make progress, learn more, and take steps closer to becoming a homeowner.