Let's Catch You All Up...

(I started this blog the other night, due to obvious reasons, I got tired and went to bed before it's completion..  Finishing it out today)
I'm sitting on my couch with a glass of Jack Daniels and Pepsi on the end table next to me. Before you stage an intervention, this is not a regular occurrence. Obviously, because one glass had me explaining Peter and the Wolf (Sergei Prokofiev version) to Andy while he kindly acknowledged me occasionally glancing over his laptop with a smile.

Alcohol is not the answer to any problem. Unfortunately, after a bubble bath, meditation and some yoga I simply can't get the muscles in my back to relax from how tense they have been over the last few days. I know, it's time to go see a chiropractor but for tonight.. cheers. 

The last few days have been a nightmare. They shouldn't have been. Motivated and incredibly flexible seller, fantastically resourceful realtor, available finances, what could go wrong? 

We'll start with Wednesday. We received our purchase agreement from Maureen via Dotloop that evening. Andy "Eeyore'd" his way through it,  e-signing/initialing at all of the required spots, sans expression or excitement. All of the sudden he exclaimed, "September 19th!!!" The realtor had scheduled the closing for September 19th, a month away. This had us scrambling most of that evening to pull the rest of the needed material together and begin planning our move. After a quick discussion with our Quicken Loans Lender, Nigel,we found out our monthly mortgage payment will be a mere $350 with escrow included at an interest rate of 4.5% and all we would have to bring to the table on the day of closing was $400 (A total closing cost of $1200 that includes the $400 appraisal fee and an Earnest Money Deposit of $500). We went to bed Wednesday night, excited and nervous.

Thursday morning I began Pinteresting. I decided that Antonio Gaudi would be my inspiration. 

Hellooooo Highpoint! Talk about increased appraisal value. I should call This Old House and see what they can do for me.

    On the way home that night, Andy spoke to Nigel who, out of no where asked, "Hey wait, are you guys relocating?" What? Of course we are. Where have you been all this time? Andy, with his fantastic deep voice and North Carolina accent slowly answered, "Yes..."Of course Nigel replied, "Well... that's going to be a problem."The VA requires the homebuyer to provide at least one pay stub from the job they are relocating to, unlike an FHA which simply requires a letter of intent stating the compensation   that has been offered and the date of hire.

How on earth are we going to do that before September 19th? We aren't. We will have to live there for approximately a month before Andy gets a pay stub. So the next 24 hours consisted of Andy and I pulling something out of our rear ends. On Friday afternoon, after a day filled with anxiety, we got the email that the seller has agreed to allow us to rent the home for a month and close in mid-October. Andy will be putting in his two weeks notice after Labor Day and we'll be giving our land lords notice when we turn in rent this month. We should be moving into the house September 20th. *commence lamaze breathing.. now*

My daughter, Haddie (4) was previously enrolled in Surry County's Pre-K program. Now that's going to be changing a bit. Guilford County has already closed their Pre-K registration for a year but they do have a program called Guilford Children that allows me to find a reputable daycare/Pre-K combo for free within the county. Pre-K isn't like Kindergarten, the county has a limited number of spaces and uses assessments to give the places to children they feel are in need of a Kindergarten prep-program. Haddie already knows her ABC's, can write her name and can count rather high. Although I'm not stressed about her ability to assimilate into Kindergarten efficiently, I would like her to have some friends in the area. That's why I decided to enroll her in Guilford Children.

As someone who enjoys consistency and planning, this move may be a bit difficult on Haddie but I'm trying my best to explain it to her. I've been looking for books about moving and Amazon has a pretty decent selection. She has seen pictures of the new house and has expressed excitement about being closer to her step-brothers. I think the biggest thing she's going to miss is her Daddy. We were given a dog recently who has latched herself onto Haddie and I think this will help. She has already shown signs of disciplinary improvement just by having that little friend to take everywhere and love on. I'll write about the dog on another day. Too much to put on here.

We'll be commuting back and forth a few times until the school semester is over, fortunately most of our classes are online.  My grandma was telling me that although she was happy that I was going to be able to experience new places, she thinks that I'm going to miss Surry and realize quickly what I'm missing when I leave. I'll miss that sigh of relief that I exhale every time cross the Surry town limits. Despite it's many flaws, this has always been home but I think it's time for us to establish our own family now. I'm looking forward to disproving the statistics one reads about divorced families by establishing a stable and loving home. I can't wait for Andy to be able to work 40 hours a week and still be able to pay bills on time. I can't wait to wake up at my usual 6-6:30am with Andy still laying beside me. Yeah, I'm going to miss the safety of Surry, but what is safety in comparison to a life filled with stability, substance and vivacity?

You can tell what I wrote today.. and what I wrote Friday night ;) but I suppose it's apparent that the muscles in my back have began to loosen. If anyone feels like helping us pack... You are welcome but don't be surprised if I'm a bit of a nut case. 

So You Want to Get a VA Loan?

When I realized that Andy had applied for a VA loan instead of a regular mortgage I reacted instantly by researching VA standards on HUD. I wanted to make sure our cute (but older) home wasn't going to cause us an immense amount of grief. Also, I spoke to our realtor and asked her to make an addendum to our offer. We would be willing to consider a counter offer including the cost of mandatory repairs within reason. The seller accepted our offer essentially pending VA inspection.

 So what's the deal with a VA Loan?

First you have to be a veteran.

Sorry folks. No military time, no military benefits. 

VA Loans are a favorite of most banks because they are 100% insured by the government. If the home owner doesn't pay, the government will cover the loss. When you call your lender to get pre-qualified for a mortgage, one of the first questions they will ask is, "Are you a veteran?"

VA loans were designed to allow veterans or their spouses (if not remarried) access to home ownership with or without a down payment and in most cases, where private financing was not available. For example, traditional Fannie Mae loans allow the home owner to purchase a home where the monthly payment would be approximately 28% of the gross monthly income whereas these loans allow 41%. Also VA financing often offers lower interest rates and other benefits such as $6000 for energy efficient improvement.

These loans have standards. Regular mortgages are granted based on overall appraisal value but the home purchased via the VA must meet certain standards not only to protect the VA's investment but also to protect veterans. Honesty is undervalued in real estate. 

After choosing a home, being approved for a mortgage and making an accepted offer, the homeowner must pay approximately $400 for an appraisal by a certified VA Inspector.   

If you're wanting to purchase a home using VA financing, making sure that it meets their standards can make or break your purchase. You may end up losing your dream home because the seller isn't interested in fixing the problems. Always have a back up plan. 

So what are they looking for? This is my HUD VA Appraisal Overview.. paraphrased:

Zoning: Residential only. When searching for a home, some offices will be on websites such as realtor.com. These are not zoned residential. Many time this will be stated on the overview but you must make sure before proceeding with VA financing.

Access: Must have safe and private access to the home. Driveway etc. 

Adequate Space: The home has to have enough space and a REAL kitchen, bathroom, living and sleeping space. This sounds silly but... I think I feel a story coming on..... 

A few years ago, prior to my having children, some friends and I decided to move into the back of a store front and start our own non-profit Internet Cafe in our town to be actively involved in meeting local needs. It was called The Center. We lived in storage rooms and created a make-shift home in order to see our dreams be established. We shared our bathrooms with the public. We took showers at our church. We lived our lives on a stage with a town of approximately 8000 people able to see though the large glass windows. 

This is an example of NOT GONNA HAPPEN. Idyllic? Sure. Practical? Noway. 

Water: Must have domestic hot water aka a water hose doesn't count. Must have safe method of sewage disposal (no chamber pots) and a continuous safe supply of water for drinking etc. They also prefer that you not have a well. They would rather the property be connected to a public system to ensure standards are regulated. 

Heating:  "Must be adequate for healthful and comfortable living conditions" If you have a wood burning stove, there has to be other means of heating your home to maintain a minimum temperature of 50 degrees Fahrenheit. Solar panels? HUD has regulations for that. Basically? You have to have a back up plan so your kids don't lose toes.

Electrical/Plumbling: No fire hazards. Everything must be useable and have some life left to them. There will be no getting VA approval if everything in your 1940's built home is original issue... if it even works.

Roof: No leaks. Also... something that surprised me was, they want it to be economical to maintain.

Consumer reports did an article on the best roofing options. Good stuff.

If the roof has to be replaced and there are three or more layers of shingles, the seller has to remove all of the old shingles first. 

Crawl Space/Ventilation/ Drainage: There has to be access that doesn't have any debris it has to be properly vented. The floor joists have to be high enough to provide enough room for someone to work on it if need be. The inspector will look for ponds of water under the house or excessive dampness. If he finds any, the seller has to fix it before the purchase can commence.  Gradation of the property and natural ventilation in both the attic and the crawlspace/ basement must be adequate enough to prevent excess moisture buildup aka mold and overall damage to the structural quality of the home.  Here are some examples of what to look for:

Mold damage

Puddles

Sagging floor joists

No No's: Termites, defective construction, poor workmanship, evidence of continuing settlement, leaks, puddles where puddles should not be and overall decay. Nothing hazardous to health of the buyer or to the structural soundness of the overall dwelling (MOLD)

And the biggie in most older homes... 

Lead Based Paint: Has to be tested to insure that the levels of lead aren't above those permitted by law. No chipping, cracking or overall defective properties. If this exists... the seller will HAVE to get it removed through an extensive process which can be a pain in the butt. 

We don't think any of these things will be an issue in our new home. (Whew!!) If they were, I'm not sure we'd want the home anyway. Some minor electrical issues, or small scale leaks are easily and affordably fixed. Structural damage and overall poor construction isn't.

 It may seem like a hassle, but if you're eligible for VA Financing and the home you're wanting to purchase meets the requirements or close enough, give it a try. It can almost take the place of a home inspector if you're willing to take the risk. 

When buying using a Fannie Mae mortgage, this is NOT the case. Get a home inspector. Do not forgo this. You will regret it. A lot of structural damage isn't visible to the untrained eye. Even your realtor misses things. Do not buy your home and subject your family to the misery of an inadequate housing situation. 

So what now? Well.. paperwork. We'll have a closing date soon.  I'll keep you posted :)