So now I'm getting stressed and confused:
1. I really want the Baltimore City $3000 forgiveable loan for city employees, but you have to go to a class first. The classes are only offered sporadically, and I have no real idea what to do once I take the class. I did register for a class that specializes in SW Baltimore. I don't want to live in SW Baltimore, but at least I'm getting the class taken care of. I have heard that getting this grant is difficult and often it comes at the very, very last minute.
2. What is an FHA loan? Why don't I just get that? I looked around online and applied for one, but it seemed random and I'm expecting it just to result in junk mail in my email box. So far, I'm going through MECU because (a) I want the mortgage to come directly from my paycheck, knowing that my paycheck only comes for ten months (this is big); (b) they pre-approved me for $150,000 and she said nice things about my credit; and (c) most of my teacher friends have gotten it from MECU. However, I'm worried that all my friends are in better shape financially than me and had more for a downpayment. The 3.5% down payment will eliminate all of my savings for the summer. I should be able to save enough before the end of May to replenish, but it will be a struggle. The unpaid months of July and August will be very stressful, unless I can find great 6-week work somewhere.
3. I haven't got my W2 from the restaurant yet, so I can't do my taxes yet. I'm counting on a big return on my taxes this year in order to have 3.5% for a down payment.
4. I met a realtor on Saturday. He emailed me back. I called the number on a sign of a house I really want, and this other agent responded. I've also gotten two really good recommendations. I'm not really sure what "having" a realtor means. When do you know if you have a realtor? I don't want to tease these people. I want someone who is an expert at the Healthy Neighborhoods Program, as well as for the areas in which I want to buy. I want someone who will tell me about any Teacher Next Door homes that have snuck under my radar. I also want someone who will really help me navigate all these incentives. People are telling me things and I'm following up as best I can, but it's all too much for my don't-sweat-the-small-stuff brain. Does a realtor even help with this stuff? I might just need a life coach.
I'm also feeling terribly. I haven't been this sick in a while. Today, I almost took a sick day, and probably would have if it were such a huge week for our school.
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8 comments:
It's normal for buying a housing to be completely overwhelming. Given that you have a lot of important homework to do, do you think it would be possible for you to secure temporary housing for April? I think it's very ambitious for anyone to try to buy and close on a house in 2 months.
It is a lot of info to digest, and you need more than random comments that send you in various directions. The steps you've already taken are great.
1. So you need a a homeownership counseling certificate? The class should help you answer these kinds of questions. One on one counseling is also available from agencies.
2. FHA loans are insured by the Federal Housing Administration of the US Dept of Housing and Urban Development. What's important to you is that FHA loans unlike most conventional allow a low 3% downpayment and you can roll your closing costs into the loan. Not all lenders can issue FHA loans. How did you apply for an FHA loan online???
Non-FHA loans may have low downpayment options. Different lenders may offer different loan products and different interest rates. This is another area you can research by talking to another lender and/or checking overall rates online.
3.
4. A realtor does not really help with this stuff. A housing counselor does. Don't just call the number on a sign. You want to have your own buyer's agent. You can call a few realtors, tell them what you are looking for, see if they have the knowledge you need. Belair-Edison Neighborhoods Inc. recommends some realtors. I would recommend the realtor I used. I'm not sure how well he knows Healthy Neighborhoods.
Sorry this is longer than your post! Hope this wasn't more confusing. I'd really recommend a housing counseling class and/or one on one sessions to lay this all out in a coherent, thorough fashion.
I agree with Danielle-- I've bought two houses, and both times it's totally overwhelming.
Have you gone to Live Baltimore's offices? I bet you've checked their website, but maybe not gone there yet. They have counselors and staff who can walk you through a lot of this, and help you navigate city programs especially.
Thanks, to both of you.
Danielle: I've been looking on craigslist for temp housing, but it's pretty tough for a guy with a big dog and a cat. I don't want to be locked into anything long term, because I'm ready. My current housemate says she'll let me stay a bit longer if necessary. You made me feel better about going to these classes.
Jackie: I went in there on Saturday, and they were very nice and helpful. I'll probably pay them another visit soon.
I took the homeownership class in early January. The 4 hours goes pretty quick because they cover a lot of information and answer all of your questions about the buying process. You'll soon realize that everyone at that class is also there to get that certificate.
I'm scheduled to attend my required one-on-one follow up tomorrow. They'll give you information at the class about what you need for that. Check with the organization your taking your class with. I took mine at Garwyn Oaks, and they don't offer one-on-one sessions other than during the work week. I have to take off work to attend!
This process can get hairy but just know you're not alone!
Hi Mark. We got that grant by going to a one-time counseling session. At the end of the hour, the woman gave us a certificate, which we submitted in our application for the grant. I think the office was on Harford Rd. or Belair. We must have found the name of the place in the grant application materials. Or maybe MECU gave us the list of places to call to arrange a session.
Thanks, Burke. I'd love to know the name if anything jogs your memory. The quickest class I could find isn't for a couple of weeks.
Mark:
I sent you an email as well-my wife and I took the class on Belair Road in the County. It was worth it, though we had done enough research that it was a little redundant. The downpayment assistance was worth the four hours. HarBel is who we signed up through.
You should absolutely do research and meet with several realtors before you choose one. Be up front and let them know you are looking for someone, ask them what they have done, if they have experience in certain areas, etc. They are so hungry for buying biz right now they will line up. Our team was excellent, by the way, and one of them lives in Remington.
I used to work as a homeownership counselor here in Baltimore and I want to echo what Danielle said in her comment. A good homeownership counselor can help guide your through this whole process and has only your interests in mind, unlike realtors or agents, even the best of whom have a financial stake in the transaction.
A good housing counselor knows loans and incentive programs that match different needs and neighborhoods. She can pull your credit report and go over it with you. She can also go over your budget, paying particular attention to your debt load. Different loans and programs have different criteria ratios of income to expense in order to qualify.
A good counselor knows neighborhoods - how the neighborhood is trending value- and development-wise and what programs, if any are already underway. She can guide you on questions to ask a realtor, a house appraiser, a seller. She can help you come up with a plan: how to search, how to look at a house, how to figure out an offer.
I'm sorry you're having trouble finding a class. Have you tried calling some of the agencies directly? I know that while classes may be scheduled only sporadically, many used to do one-on-one counseling appointments. A one-on-one might help you develope a good working relationship with a counselor.
I hope you find a good counselor. Good luck on your home search!
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