In Search of a New Home

Mid-May – Not so long ago, V and I started a quest to find our first home because V was tired of throwing away her hard-earned money on rent. Plus, with our upcoming wedding in January, we figured it was the perfect time to start laying down some roots. Even though V had a lease signed until December 2023, she was willing to face the penalties if it meant we could snag our first home. So, in May 2023, we casually began our house-hunting adventure, scouring online listings for that perfect match.

After a month of diligent searching, we stumbled upon “the one” on Zillow. It’s currently a seller’s market, despite the high interest rates. Desirable houses are getting offers left and right, often sparking bidding wars. With summer rolling in, families are in a rush to settle into their new homes before the start of the school year, making the competition even fiercer. Nonetheless, we were undeterred. We were captivated by the architectural details illustrated in detailed photos on the website, so we decided it was time for a real-life visit.

Realtor and Mortgage Loan

5/12/2023 – Our journey to find our first home kicked off with a phone call on Friday, May 12th, 2023. It was the day we connected with our fantastic realtor, who happened to be a close friend of my sister’s. My sister’s family purchased their very first home with his help. Not only did he guide them through the process, but their relationship blossomed into a beautiful friendship that now includes regular weekly meetups.

With our realtor on board, we realized that assembling a strong team was crucial to a successful home search. That’s when we reached out to V’s friend from church, who happened to be a mortgage loan expert specializing in home mortgages. We felt incredibly fortunate to have these two amazing contacts on our side, forming a powerful team to guide us on our search for the right home.

Having such capable and trustworthy individuals on our team, we had complete faith in their expertise and knew we were in good hands. With their support, we were free to focus our energy on the most exciting part of the process—finding “the house.”

Finding “the House”

6/3/2023 – With eager anticipation, I embarked on a solo visit to the house accompanied by our trusted realtor. Unfortunately, V’s busy schedule prevented her from joining me physically, but I made sure to give her a virtual tour through a video call. Even from a distance, she could see the house’s charm and potential.

Impressed by what I saw, I shared my excitement with the realtor, who echoed our sentiments. Together, we recognized the immense potential this property held. That very night, after a brief but enthusiastic discussion, V and I made the decision to submit an offer, incorporating an escalation clause due to the hot market conditions. We knew we had to go above and beyond the listed price to secure a home like this. As it turns out, our intuition was correct. We found ourselves neck and neck with other prospective buyers.

Offer Accepted – Appraisal, and Inspections

6/5/2023 – Our offer emerged on top amidst a competitive battle with a total of five other offers. It came down to a thrilling showdown between our team and another buyer who bid the same amount. However, it wasn’t just the numbers that sealed the deal for us; it was our realtor appealed to the seller to complete this transaction. I would say it’s a rare case but the seller recognized the exceptional qualities of our realtor, finding him to be highly capable and knowledgeable. They were impressed by our realtor’s experience and skills, which gave them confidence in a smooth and efficient closing process. Ultimately, it was this rapport that tipped the scales in our favor, and our offer was selected.

However, there was one condition attached to our offer accepttance. We had to agree to a five-day due diligence period. This meant that within those five days, we had the responsibility of conducting inspections, appraising the house, and securing our mortgage approval. It was a tight timeframe, but we were up for the challenge.

Without wasting a moment, we swiftly arranged for both the inspection and appraisal. On June 7th, 2023, we requested the inspection, and by June 8th, 2023, we had the detailed report in hand. Additionally, we paid an extra fee to expedite the appraisal process, making the request on June 6th, 2023, and receiving the appraisal report on June 9th, 2023. These efficient efforts ensured we had one additional day to finalize our decision before the due diligence period expired.

It’s important to note that failing to complete all necessary tasks within the five-day window would have meant forfeiting our earnest money. This earnest money serves as a deposit, and we were determined not to let it go to waste.

Appraised Value Confirmed

6/9/2023 – Time was of the essence as we navigated the tight deadline of our appraisal contingency, which gave us just five days to get the appraisal completed. Determined to stay on track, we wasted no time and immediately ordered a rushed appraisal on the very day our offer was accepted. Of course, expediting the process came at a small premium, but we were willing to pay it in order to receive the report within the crucial five-day window.

It’s important to note that even if the appraisal took longer, we could still proceed with the closing. However, the catch was that we would have to forfeit our earnest money if we decided to withdraw our offer for any reason. So, the pressure was on to make sure everything fell into place.

Thankfully, our dedication paid off. The appraisal report arrived just one day before the end of the due diligence period, filling us with relief and excitement. The appraised value of the home turned out to be higher than our initial offer. This was fantastic news because it meant we qualified for a loan that covered the full price of the house. It’s always reassuring to know that the value of the home matches or exceeds what we are paying for it.

Had the appraised value been lower than our offer, we would have had to come up with the difference in order to complete the transaction. Banks typically lend based on the appraised value of the property, so it was crucial for the numbers to align. Thankfully, we didn’t have to worry about that hurdle.

Knowing that the home we were buying had an appraised value higher than our offer filled us with a sense of satisfaction. It’s a great feeling to know that we’re getting a deal and that our investment has the potential to appreciate over time. Of course, market conditions can fluctuate, and the value may change when it comes time to sell. But for now, we celebrated this small victory and looked forward to the next steps in making this house our own.

Negotiation + Setting up the Closing Date

6/10/2023 – The clock was ticking as we entered the final stretch of our due diligence period, a crucial five days to conduct thorough inspections and make a decision without any penalties. But as luck would have it, we still found ourselves in love with the house even after the inspections and appraisal. With confidence in our hearts, we confidently moved forward to the next step: negotiating the terms of the contract.

Our initial offer exceeded the listed price by $2.5k, so we decided to push our luck and ask for a $10k discount. It was a bold move, but we figured it was worth a shot. Leveraging our inspection report, we presented the seller with evidence of necessary repairs and maintenance. Our goal? To convince them that a $10k reduction would be a fair compromise.

We operated under the assumption that the seller was eager to seal the deal and avoid the hassle of relisting the house and starting the entire process anew. With this in mind, we proposed that an additional $1.5k would suffice, considering their readiness to close. Fortunately, the owner agreed to a $5k discount and even offered to cover an extra year of home warranty for us!

Aside from a few aging mechanical equipment, the overall condition of the house was superb. We hoped that these equipment would give out before the warranty period ended, so we could take full or partial advantage of coverage for new qualifying replacements. With the terms successfully negotiated, we settled on a closing date!

What is to come

Fast forward a few days, and we’re on the brink of closing the deal on our first house. The anticipation is building in addition to the excitement building up for our upcoming mission trips. Just a few hours later we land back in the States from our missions, the home will officially be ours!

To ensure a smooth closing, we’ve diligently taken care of all the necessary paperwork. We’ve wire transferred our closing funds to the attorney’s office, crossing every “t” and dotting every “i”. When we return to the States on Monday, June 26th, 2023, we’ll eagerly put pen to paper and sign the final documents that solidify our ownership.

It’s amazing to think about the entire journey we’ve embarked upon. From the moment we started house-hunting until now, it’s been about a month and two weeks. And incredibly, the closing process for this particular house has been lightning-fast, taking only 24 days from the moment we laid eyes on it to receiving the precious keys.

These upcoming days are bound to be filled with pure excitement as we inch closer to the culmination of our home-buying adventure.

At a Glance

• 05/12/2023 – House Search Began
• 06/03/2023 – First Visit to House / Home Mortgage Pre-approval Letter Obtained / Offer Submitted
• 06/05/2023 – Offer Accepted w/ 5 day Due Diligence Period
• 06/06/2023 – Placed Expedited Appraisal Service
• 06/07/2023 – Placed Home Inspection Service
• 06/08/2023 – Received Inspection Report
• 06/09/2023 – Received Appraisal Report
• 06/10/2023 – Negotiated Terms of Contract + Set the Closing Date
  

Team