I went a bought a house...now what [My experience thus far]

Member since 2019 · 12 posts · 4 votes

First contribution, long time consumer of BP content.

About me: 28 years old, first time home buyer and Floridian Nurse who plays OSRS.

This project: I want to document and interact with the members of this amazing community during my home buying, closing and house hacking process.

Progress: Approved for 140k loan at 4.25% [100% finance, no PMI, No origination fee, no down payment], found a house for 140k, inspection completed, currently looking up homeowner/flood insurance and turning in document to bank. Closing date set for May 23rd.

Now what- I will be sharing inspection report, pictures of the property and talking through renovation ideas in the next post

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Brian G.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Richard Jean WooHoo! House Hack - my favorite. Once I kick the last 4 of our 6 kids out of the house we hope to attempt the same thing. Do you have any room mates lined up yet?
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Home inspection - Document attachment to home inspection [ at this stage i have left out identifiable information in the documents, please if i missed something bring it to my attention]
Home inspection was completed with a cost of 500$ (home inspection lasted approx 2.5 hours, wind mitigation and 4 point inspection and termite inspection) and from the looks of it the biggest find was evidence of termite. Hughes termite company came out for an evaluation as per the mortgage requirement and gave a nice estimate of approx 1400$. The seller is getting 2 more quotes from other termite company. I have left termite treatment up to the seller and requested a paid invoice of treatment to be submitted to the bank once finished.
Today I will be calling insurance company to obtain quotes, since this is in a flood zone, we will see what we can find. My first quote for homeowner was $1413/year ( price was dropped by 200 because i had good result from the 4 point and wind mitigation that was performed during the house inspection) and flood insurance is quotes at $1502/year .
The search continues!
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Brian G.:

@Richard Jean WooHoo! House Hack - my favorite. Once I kick the last 4 of our 6 kids out of the house we hope to attempt the same thing. Do you have any room mates lined up yet?
This is my first rodeo with this, i will start looking once we start the renovation. However the location is about 10 min from 2 major hospital in the city as well as 10 mins from a major university. So I am hoping we can get some seasonal rental in the healthcare profession to rent the room out too or find students to sign a year lease with a co-signer.
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Info on the house: This is a single family home 3 bedroom, 2 bath with a hanging garage, 1212 sq ft. Built in 1978. Central water however is on septic system.
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Dion McNeeleyPro Member
Rental Property Investor · Port Orchard, WA · Member since 2018 · 116 posts · 123 votes
7y
Hi Richard,
At first glance all these numbers look good. Sounds like you have done the research and are making good decisions. I am curious how you got the loan without a down and no PMI etc, VA loan?
Good luck on this one and the ones to follow.
Podcast Guest on Show Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Dion McNeeley:

Hi Richard,
At first glance all these numbers look good. Sounds like you have done the research and are making good decisions. I am curious how you got the loan without a down and no PMI etc, VA loan?
Good luck on this one and the ones to follow.
Haha do not be fooled because i have no idea what I am doing. I am heavily relying on the internet and hopefully feedback from the discussion taking place on this forum to guide me through this journey.
As for the loan, check this out Loan information
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Dion McNeeleyPro Member
Rental Property Investor · Port Orchard, WA · Member since 2018 · 116 posts · 123 votes
7y
Thanks for the loan info. I had no idea. =)
Podcast Guest on Show Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Dion McNeeley:

Thanks for the loan info. I had no idea. =)
haha glad i could help
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Homeowner insurance quote--- about 200$ cheaper than everyone i looked into so far... what do you guys think.
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Andreas W.
Durham, NC · Member since 2013 · 502 posts · 215 votes
7y
@Richard Jean
I am curios, what loan did you pick that gave you an interest rate of 4.25%?
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Andreas W.:

@Richard Jean
I am curios, what loan did you pick that gave you an interest rate of 4.25%?
loan information
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Andreas W.
Durham, NC · Member since 2013 · 502 posts · 215 votes
7y
@Richard Jean
Got it. Which one of their offerings pairs up with the 4.25% interest rate?
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Andreas W.:

@Richard Jean
Got it. Which one of their offerings pairs up with the 4.25% interest rate?
I am doing the 30 years fixed, i was also told that there are no penalties for early pay off and also you can purchase a lower interest rate with a larger down payment but those things dont interest me at this point so didnt bother looking into it.
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Andreas W.
Durham, NC · Member since 2013 · 502 posts · 215 votes
7y
@Richard Jean
Congrats. That is a fantastic rate.
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Lee Bell
Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
7y
@Richard Jean
You being a nurse I'd guess you have contacts that might help this strategy work.
Good luck, nothing like learning as you go.
the location is about 10 min from 2 major hospital in the city as well as 10 mins from a major university. So I am hoping we can get some seasonal rental in the healthcare profession to rent the room out
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Originally posted by @Lee Bell:

@Richard Jean
You being a nurse I'd guess you have contacts that might help this strategy work.
Good luck, nothing like learning as you go.
the location is about 10 min from 2 major hospital in the city as well as 10 mins from a major university. So I am hoping we can get some seasonal rental in the healthcare profession to rent the room out
I do have friends in those 2 major hospital that can help me spread the word however I will rely on short term rental website tailored for traveling healthcare professional and of course Facebook groups.
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Update: Termite issue has been resolved the seller will essentially pay for termite treatment and the broker will assist in this by decreasing listing fee from 5% to 4.5% saving them 700 dollars and refunding me a "documentation fee" of 250 so i will get a check at closing for 700 and the 250 saving totals me at 950$. We were able to talk down the termite treatment from 1000 to 863$ so great news.
Going through this process, I wish the bank was a bit faster in the turn around when submitting documents. I am still waiting to hear back about what other document is needed to be submitted and waiting to hear back concerning the appraisal value.
back to my corner to wait some more.
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Richard Jean
OP
Member since 2019 · 12 posts · 4 votes
7y
Updated Flood insurance and homeowner insurance quote....what do you guys think, these rates are based on the elevation certificate for the flood insurance and the 4-point for the homeowner insurance
^^ Homeowner insurance
^^flood insurance
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