The Next Rich Girl

First House, Step 1: Meet The Lender!

Well, my husband and I made the first dramatic step toward home ownership yesterday.  We met with a mortgage lender.  Holy crap.

A few notes for other potential first-time home buyers out there:

1. Know That You'll Have to Give Them Every Single Bit of Personal Information You Can Possibly Think of:  Before our meeting, we received a list of all the documents they'd need to start the pre-approval process.  Good lord.  Two years of W2s.  Last two pay stubs.  Copies of statements from every single bank account you have, even if it only has 30 cents in it.  Copies of your driver's license.  And, since my husband is self employed, they needed even more from us: 2 years of tax returns, a profit and loss statement, etc.  I was waiting for them to ask for a blood sample or for character references from our friends and family members.  Maybe that's part of the second meeting?

2. Prepare to Feel Overwhelmed:  We were very lucky to meet with two very intelligent and very clear loan officers.  They even had a little quick reference chart for us that explained the entire process, which was great.  But, I think no matter how much research you do ahead of time, it's hard not to feel a little dumbfounded in the face of so much information and so many different loan products.  Just take a deep breath and try to take it all in.  You're got time.  There isn't a test at the end of the meeting.

3. Make Sure You Feel Comfortable with Your Lenders: You're giving a lot of very personal information over to someone who is essentially a salesman.  Don't be afraid to ask lots of questions and get to know them.  They're going to know just about everything about you, you should at least feel comfortable talking to them.  If something doesn't feel right, it's okay to walk away.

4. Did I Mention Asking Questions?  Seriously, there's a lot of money at stake here.  If there's anything you're not sure about, ask.  If the answer doesn't make sense to you, ask again.  If you don't feel comfortable asking, you're working with the wrong lender.

Good luck all you potential first-time home buyers out there.  I'll talk more about my meeting with the lender later this week.  I have a lot of paperwork to look over...

Resolved: Financial and Personal Resolutions for 2010

I know, I know.  It's January 5th.  I'm way behind on posting my resolutions.  But, on the bright side (for me, not you), since most people have already abandoned their resolutions by now, I look like a more inspired, enlightened individual... one who can stick to her resolutions and who will prosper in the year ahead.  

Or maybe I'm just fooling myself.

Anyway, since one of my tips in my New Year's Eve post was to tell the world about your resolutions, it seems like I should do the same.

Here's what I'm trying to accomplish in the year ahead, both personally and financially.  

1. Buy my first home - This has been a dream of mine for a long time.  Seriously, when I was a little girl, instead of dreaming about a fairy tale wedding or having a pony or whatever, I used to imagine the house I'd have.  I think this is partially because my parents are both into real estate, so they would take me with them to open houses "just to look" when I was a kid.  So, it was like I inherited one of their dreams (and they have a beautiful house now, so they're the right ones to look up to!)  Anyway, I've been saving for a down payment for a long time (and somehow most of that down payment savings survived the epic financial crisis of the past year or so).  With the $8,000 first-time homebuyer tax credit (thanks taxpayers!) and the fact that my 30th birthday is just around the corner, everything seems to be lining up for this to happen in the next few months.

2. Earn $5,000 outside of my "day job" - I've been lucky enough to fall into a few random freelance writing projects over the past year or two... enough to show me that I could probably be doing a lot more freelance work if I start to seek it out more actively.  I don't know if I'll ever be able to fulfill my dream of working for myself, but it seems silly to not try to point myself in that direction.  After all, you don't know if you don't try.  And, this will go a long way toward helping me achieve goal #1.

3. Run at least 350 miles this year - I never thought I'd be a runner, but after completing a "couch-to-5K" program back in 2007, I got hooked.  Not only do I feel healthier, I think it actually helps me deal with stress better, keeps me from getting sick as often and helps improve my overall outlook (which can be gloomy - especially when it's so bitterly cold outside).  I ran just over 300 miles in 2009, sort of in fits and starts (one week I'd run 10 miles, then I wouldn't run at all for two weeks).  In 2010, I'd like to be more consistent with my runs.

4. Finish my novel - That's right, I'm more than just a blogger musing about personal finance.  I'm also among the legions of writers working on what they hope will be the "Next Great American Novel."  Of course, in reality, I'd be happy with "A Novel That Is Published."  Either way, I have to finish it first.

So, there you have it.  Four big goals.  What are your resolutions?

House Fever!

Ever since that fateful conversation with our landlord put the home ownership bug into the ears of myself and my husband, we've become a family obsessed.  

We're obsessed with monitoring the first time homeowner tax credit extension process (it's looking likely).  We're obsessed with looking for distressed properties in nearby neighborhoods that might need our love.  We're obsessed with researching the plethora of programs offered in our city and state that could help us buy our first home.

Let's just say, I can see how people got carried away during the housing bubble.  

There are so many opportunities out there right now, it feels like the universe (or at least the local government) is holding the American Dream out to us on a silver platter... just begging us to grab it while we have the chance.

So, I'm trying to tell myself to chill out.  To research everything.  To crunch every number a dozen times.  To talk to as many people who've been through this as possible.  Basically, I know how easily I can get carried away (that's how I got myself into debt a few years back.  Of course, that same singular obsession is how I got myself out of it too.), so I want to make sure that I'm looking at this logically.  I don't want to fall in love with the idea of a house and send myself (and my husband!) careening down a path that doesn't work for us.  

But, I'll admit... the idea of a little house with a mortgage payment lower than our rent (which is what we're looking at), is incredibly appealing.

So, we're taking it slow... sort of in the "wine-and-dine" phase of house hunting, not the "commitment" phase.

Have any of you out in the blogosphere looked into buying a house in the aftermath of the bubble?  What have you experienced?

Wow, Could It Be Time To Buy a House?

I never thought I'd type those words so soon.  After all, haven't we all watched anxiously as former homeowners have been foreclosed on, banks have failed, credit has tightened?  In the last year, owning a home quickly turned from the American Dream into the American Nightmare.

But, here I am, wondering if it's time to get in.

On paper, it sounds stupid.  I have only enough for a small down payment.  My credit, while steadily improving, is less than stellar. My income is stable, but not the income of my husband who owns his own business.

But after a random conversation with our landlord (a real estate investor in our area - not exactly what we want to do), my husband and I started thinking about it.

Were we so convinced that we shouldn't buy a house that we'd blinded ourselves from actually making an informed decision?