Home Sweet Home *** The American Dream *** A Piece of the Pie!
Yes! A week ago today (Friday), my daughter achieved the much alluding American Dream! It took almost a year to reach it, but it was worth the fight. A year ago, my daughter and I began the challenge of buying a home in the northern VA area. I knew it was not going to be easy but with perseverance, strong negotiations skills, tenacity, we would succeed.
Steady employment
On Friday, February 25, my daughter, and I went to SETTLEMENT! I am so proud of her. It all started almost two years ago. I do not recall how on earth I received a notification that Fairfax County Public Schools was hiring. I passed the details to my daughter, and she applied. A few months after all the required paperwork was submitted, she was hired. A year later, she was promoted to a permanent position. That ascension opened the door for her to qualify as a first-time home buyer. A series of steps had to be taken to get us approved. My daughter had to have the usual requirements of taxes, W2s, and credit history in place. She was able to secure these items with some discipline as she is quiet young. However, since I was helping her, I also had to submit a plethora of documentation from my personal income to my business income. It was easier said than done. Clay Greenway from The Federal Savings Bank, and his team hit a grand slam with their professional loan services. He and his team were there all along the way through all the FHA regulations, Covid-loan restrictions, underwriter challenges, additional tax documentation, etc.
Once the lending portion was done, the real fun began. Trying to find a home was not going to be easy. The market was and is blazing HOT. It was an impossible task to accomplish a contract ratification. I believe I wrote between 10-15 contracts before the first ratification was achieved. Unfortunately, the celebration lasted but a few days. The property that accepted our offer was a beautifully renovated TH that had been flipped just a month before. Because of its status, it could not accept FHA loans for another 6 weeks. Initially, the seller was willing to work with us, and wait out the holiday season “under contract” with our offer, under the condition that an updated contract would have to be officially ratified the first day FHA offers were accepted. If a conventional loan, VA, or cash offer came in during that period, then our offer would be cancelled. On the first day that FHA offers were accepted, I submitted our updated offer, but there was no response as it was during Christmas day. Three days passed, no response still. That was not a good sign. I eventually received a notification from our MLS that a property I had marked as favorite was now under contract. It was not a pleasant feeling nor a great way to end the year. A few days before THE deadline allowing FHA loans to be considered, a purchase offer with conventional loan approval came in, and the seller ratified it. We were disappointed. Back to the drawing board, back to the chase. More showings, more contracts, more “Nos”, more outbids. We eventually ratify a second contract, only to realized that it could not support an FHA loan purchase because it also was a flipped home.
Third time is indeed the CHARM! Through snowstorms, highways shut down, multiple offer scenarios, extremely low inventory among other challenges, we finally succeeded. Not only were we successful in ratifying an FHA contract, but we were also able to help a family that was going through hell due to major health problems.
The first day we went to see our future new home, it was during a snowstorm/ice storm that eventually paralyzed our area for a few days. There was ice everywhere and the temperatures were frigid cold. It was so cold that the lockbox was frozen shut, buried in snow/ice. There were 8 agents out and about with their clients circling a set of 5 townhouse in the same neighborhood, including us. Most of us were professional and helped each other or our clients. There were a few bad apples that not even the frigid weather could chill them out. The frozen shut lockbox kept all of us from seeing the townhouse that would become our future home. My daughter and I went out again early the next day; our perseverance paid off. It was still icy, snowing, and frigid cold but the lockbox was more cooperative, and the sellers glad we were determined to see the house despite the temperatures in the teen degrees.
Ratification **** Home Inspection
Identity Theft NIGHTMARE!
The townhouse we went under contract met most of our criteria, especially the financial portion. We were elated that a contract had been ratified but not 100% sure the sell would happen. For whatever reason, if something could go wrong it did. First, I learned I had had identify theft! Immediately all credit had to be frozen. Every day there was some sort of credit item that had to be addressed, or an explanation provided to the lender. Accounts/ loans paid off were showing up as not paid. Secondly, the lender’s software did not like me. I had to submit or sign documents multiple times as the software kept rejecting the paperwork.
The seller agreed to a purchase contract with a home inspection contingency. YES! The seller agreed to a home inspection contingency. Incredible, but true. Home Sweet Home Inspection LLC, came out to inspect our property despite the freezing temps. They were very knowledgeable and professional. Upon the inspection we found some things wrong with the townhouse that were not given us the warm and fuzzy feeling we all want in a home. Thankfully, Santos and Isabel from S&I Construction were able to meet with us the day of the inspections and were able to give some reassurance. The townhouse will need so TLC but it’s doable. One project at a time.
Appraisal
Next up the appraisal. Yes, the seller accepted an offer with appraisal, and finance contingencies. In our market, that is unheard off. Appraisal-wise everyone was nervous. Many properties have been recently selling without an appraisal contingency, without professional photos, videos in place. Appraisers need these data points to make evaluations and necessary adjustments. If they don’t exist, then the appraisers must expand the search to find other potential comparisons for their evaluations or know the neighborhood and properties very well. Expanding the search to find comps is not necessarily the best thing to do as it may require evaluation and additional adjustments which in turn may cause more delays to complete the report. Overall, the data in the real estate market was showing strong sales Lake Ridge area where we were buying but all properties that could function as comparisons were either much larger or much smaller than ours or condos. Comparing large townhouses to smaller ones would require making adjustment. However, comparing townhouses to condos would be the same as comparing apples to oranges. Appraisers are very cautious of the comparable, they consider. The appraisal order was placed within 48 hours of been under contract; but GUESS what? The appraisal report was delayed as well. It had been delayed…surprised, surprised by yup, the weather! After three long weeks, alas, the appraisal report came back, and the property appraised at slightly higher ratified purchased price. We all breathed a site of relief; the property had appraised, and to the joy of my daughter and me, it appraised above the purchase price! We are buying with equity.
Having the home inspection and the appraisal phases done, we thought the tough parts were done. We had the wood-destroying insect inspection (WDI) and the finance contingency to get through. CSI Inspectors conducted the WDI inspection, and it came back positive for termite activity. Not what anyone wants to hear. Thankfully it was not in the townhouse but surrounding areas. Remediation took a couple of hours, and it was remedied.
Finance Contingency
Show me the MONEY!
The finance contingency was another beast all together. By the time we resolved all the issues with possible identity theft, accounts not updating, etc., my lender needed updated business tax declaration or an Audited Profit-and-Loss statement. Remember, we started the process in 2021… it was now 2022, and I am a business owner. The lender can request taxes, or APL, and I can contact my CPA to do my taxes or hire a CPA that specializes on APL. However, no matter how bad we want to do my taxes or APLs, you can’t do them without W2, 1099s, etc. My tax advisor, Ben from FSC Inc. worked diligently trying to see what he could prepare for a tax report as I frantically gathered tax documents. At the same time, I was trying to secure the services of a CPA for APL. I contacted about 7 CPAs in our area; not one of them does APLs. One does but it would take 3-6 weeks plus the fee to do the APL is through the roof. I was at wits end. I didn’t know what else to do. I updated the listing agent of the troubles we were having, and the sellers graciously agreed to give us 10 more days to get the necessary documentation! Amidst trying to get an APL done, and the taxes reported, a miracle happen. Clay, my lender went to talk to his underwriter who in turn spoke to the FHA authorities. FHA department agreed to approve my loan with no updated taxes, no APL in place. I had to turn in almost 18 months of business bank statements, a quarterly, un-audited Profit-and-Loss statement for the first two months of 2022, and independent proof of current work. Thank God I had two other buyers under contract, two listing in the market and one coming soon. By the time I was done submitting documents, I had lost track of time. The last week of February was exhausting.
The lender finally gives us the Clear-to-close, and then the underwriter flags one more item. I was supposed to pay off an account, but the loan payoff had not been received. Another run against the clock. The freeze of the credit had prevented the disclosure of these details. All accounts had to be defrosted, updated, secure necessary disclosures/ releases, freeze accounts again…all in 48 hours. We got it done. Champion Title, our title company sent us the ALTA to review. The amounts of cost and credits do not coordinate. We discuss the items, make the necessary adjustments, submit for approval. Lender/underwriter approves it.
Clear to CLOSE!
The day before settlement we tried to submit the funds via a wire transfer. USAA was having some sort of problem with wire transfers. (Later on, we learned that several banks were having software and It problems). The waiting period to talk to a representative was between 60-90 minutes. My son and I got on the phone and the USAA website at the same time trying to get the wire transfer set up. After waiting for an hour, we got the wire to go through. Because of the amount needed, and bank restrictions on the amount that can be wire at one time, I needed to get a cashier’s check.
The next day is the much-awaited SETTLEMENT DATE. On our way to the settlement, my daughter and I both end up stuck in traffic. I still must go to the bank. I sent her to the settlement while I run to the bank. Fortunately, there is a Burke and Herbert Bank down the street from Champion Title. When I arrived at the bank, the bank’s software does not recognize me or my business name. The manager finally figures out the problem and authorizes the cashier’s check. The system then keeps dropping/ erasing my name so the cashier’s check cannot be printed. After a few agonizing minutes of tinkering with it, I get the cashier’s check. I arrived at the settlement office with a few minutes to spare. Shayda, our settlement agent from Champion Title, is waiting on final lender documents. She received them but the processor was having trouble with the software and with printing them. Finally, the printer begins to print…but it it prints in all sorts of font sizes and extremely slowly. At times it just stalled!!! The processor finally gets the printer to cooperate, documents are printed with the correct font. WE sign! Finally! What a stressful 90 minutes.
We settle on Friday afternoon so recordation will happen Monday morning. I eagerly awaited the magical emails letting me know that recordation has happen and that funds had been dispersed. Once I get these two emails, then I feel we have completed the purchase cycle.
Thank You* Gracias * Thank You
Thank you so much to Tabitha and Shayda from Champion Title. They were so professional and patience through out the entire ordeal of multiple contracts, months of negotiations, and especially the last 24 hours before settlement.
Thank you to Clay Greenway, Emerald, Heather, and his entire department from The Federal Savings Bank, who stood by us through all the ups, down and u-turns of the lending world.
Thank you, Home Sweet Home Inspections, for the thorough inspection done with short term notice. Thank you to CSI Home Inspection for the WDI inspection and termite remediation.
Thank you to S&I Construction for all the renovation support provided. We can’t wait to get started.
Dream, Strive & Achieve
My daughter SETTLED. She has bought her first home. At the tender age of 21, she has bought her first home! I am proud of my kitty-kat Nat. When we started, I told her it would be a journey with many curves, stops, jolts, left turns, and possible U-turns. The journey, however, was worth it. Her patience, and perseverance have paid off.
Let's Begun Your Home Journey!
The American Dream * A Piece of the Pie!
Let’s begin your home journey. Let me help you achieve the goal of homeownership, attain a piece of the pie, enjoy the American Dream in your very own home!
Buying is home is a journey that can yield wonderful results through perseverance, and a strong team supporting you. The lender needs to be well prepared to tackle all the intricacies of the lending world and regulations. The inspectors must be knowledgeable about building codes as well as what damage pests like termites can cause. The title company does so much work behind the scenes that I can them my “unsung hero”. In our case, Champion Title was excellent throughout the three ratified contracts, the delays, and all the last-minute running around as we tried to settle. Your Realtor needs to be knowledgeable about the market activity but also needs to guide you through the storms of buying a home
I look forward to working with you. Let’s begin your home journey. My daughter in her 20’s accomplished this goal, you can too.
#genz #genzbuyers #millenialbuyers # #remaxhustle #topproducer #beginthehomejourney #homebuyers #homesellers #paydebtoff #payprincipaloff #debtfree #luisahomejourney #homejourney #realtor #realestate #remax #financialfreedom #principalpayoff #homesforsale #realestateagent #sold #forsale #properties #mortgage #home #property #mod #multipleofferdisclosure #multipleoffers #stafford #openhouse #newlisting #westhamptonvillage #gourmetkitchen #crownmolding #chairrails #granitecountertops #hardwoodfloors