The last post

The last post was on Thursday, October 31. I mentioned something about house things being not-so-good. Offers of 10.25% interest rates and all.

Well, on Friday the real estate agent called. Said he knew a guy. It’s not what you think.

The guy works at a bank here in town and is working on the loan for the person who owns the home we want. The agent mentioned that this guy has been able to work miracles in the past. And he did for us. We got approved to get a loan for the house we want, and the interest rate is only 5%. (And closing costs with the down payment are only 3% of the purchase price. Crazy) Actually we have a choice. 5% until April 2004, at which point it will change to the market rate (but cannot change more than 1%). It will change every year there after. We can also get a fixed, 30 year 6.5% mortgage.

While there are advantages to a fixed rate, we will be going with the 5%. It means about 100$ less per month, and we will need that because right now we pay for just electric. I’ve heard we will have to pay for all utilities when we own a home. (Outrageous!) Then, once we get another year or two of good credit, we can refinance to a better fixed rate. Assuming that rates do not sky-rocket over the next two years. We are only 1 to 1.5 years from being ‘on track’ according to the first bank we talked with. I know that lending places look at different things when looking to underwrite (argh! insurance invades my life!) someone, but if the first bank was conservative, then hopefully by the summer of 2004 we should look good to almost any money place.

So we meet with the agent today to set up the purchase agreement. After that we will set up the inspections: house, radon, and lead. If that all looks good we might be able to close by the end of November. So if anyone (that we know) wants to spend Christmas week (Dec 25-Jan 1) with us, stripping wall paper and painting…

Also, Claire is meeting with the chair of the physics department today.

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