Buying Your First Home: Part 2

After hoping to find a great home and making my initial steps, I found my Rose Home. This home had a fireplace, two bedrooms and with problems it was still doable. My next step was to make an offer and put my money where my mouth was. I prepare to sign my first offer application with all the contingencies and the offer low enough that there was room for bartering but high enough not to scare them away. I knew I had leverage because it had been on the market since July.

Luckily there currently was not other offer on the table and it is winter with a buyer's market. Not many think of this being a great time to buy but most people are not wanting to look due to moving in the cold not sounding at all appealing. However this is when most sellers are negotiable in their price and reasonable.

The listing price was 54900 way over my price I needed it to be. Not knowing that I might be able to get preapproved for it I called my lender to see if he would extend the loan that far just in case they were not willing to work with me and he did. My initial offer was 48000 and pay the closing costs of 3000 dollars. They returned with 54900 and they would pay them. I returned with a reoffer of 51000 and 3500 dollars of closing cost including one year warranty. The final reoffer they stated was 53560 and 3500 dollars of closing costs. I agreed and put down 250 dollars as earnest money. This is not typical normally its 500 to 1000 dollars but it worked due to the time of the offer.

The next phase spelled out in the offer was that I needed to get the backing, insurance and inspection done within 15 days of acceptance. Here is where things can get hectic and stressful. You are working now not only on your own time but others time. My inspector could not see it until after thanksgiving, and backing was a process in its own.

I first decide to get the backing started and went to see my lender and sign the papers for the application. I felt I was signing my life away but knew that I could handle the price I had settled on. Most apartments are that much around Indianapolis so it was not an unreasonable mortgage. Unfortunately I needed my bank statements which because of some jerks trying to take money out of my account that had no authority in doing so I had some NSF charges that I had to hope were not going to become an issue. Luckily I went to the bank and recieved letters saying it was temperarily taken off the account due to the hackers.

I had to have my driver's license, social security, tax papers for the last two years, current pay stubs from my job showing I had one, 401-K information, any bankrupcy papers, any judgements, and any other legal document that involved money. Because we had already done this once when it was my boyfriend and myself I only needed to update the information.