CHAPTER 1
She & He just had a baby, Mee. Their 1 bedroom apartment was starting to seem really small. Late one night She couldn't get back to sleep after feeding baby Mee - time to search the Internet to wind down. Hmmm... recipes - boring, diets - depressing, great deal on a house - interesting! Click -She started checking out real estate websites - so many to look at - how to know what is best. She decided she would email 3 Realtors and use the first one that emailed her back. Now off to bed. Good night!
In the morning She woke to find only one Realtor had responded - so She decided that would be the one. She and He set up a time to meet with the Realtor. Their new Realtor suggested that the first step to buying a house was to talk to a Lender and get pre-approved. Their Realtor recommended 3 Lenders for them to contact. He suggested to She that they should contact Uncle B's 3rd cousin from his first marriage to do their loan. She wasn't so sure, but figured might as well check him out too.
Monday - She & He met with Uncle B's 3rd cousin from his first marriage. Uncle B's 3rd cousin from his first marriage was very nice - his office was lovely - very new. Uncle B's 3rd cousin from his first marriage told She & He they could buy a house up to $180,000, interest rate would be 5.25% & they would have a few closing costs, but nothing to worry about....
Tuesday - She & He met with Realtor recommended Lender 1. This Lender worked for a local area bank. Lender 1 told She & He they could purchase a home up to $200,000 with an interest rate of 5.25 % and minimal closing costs.
Wednesday - She & He met with Realtor recommended Lender 2. This Lender worked for a large national bank with local offices in the area. Lender 2 told She & He that they could purchase a home up to $200,000 with an interest rate of 4.99%, paying 1 point and minimal closing costs.
Thursday - She & He have had it with talking to Lenders - everyone says something different. They liked Uncle B's 3rd cousin from his first marriage, but couldn't figure out why he only approved them to $180.000. The house She liked on the Internet was $195,000 so $180,000 might be a problem. She & He decide to sleep on it.
Friday - She & He decide that they would ask their Realtor what was going on. Their Realtor looked over all of the lending options. Their Realtor told She & He she would call them back shortly. Right way, their Realtor called Uncle B's 3rd cousin from his first marriage to find out about the closing costs that She & He were not to worry about...turns out She & He were approved to $200,000, but Uncle B's 3rd cousin from his first marriage was going to have them add closing costs, prepaids & points in the amount of $20,000 to the top of the loan so he was actually reducing She & He's buying power. Their Realtor thought no wonder Uncle B's 3rd cousin from his first marriage has such a nice office - Uncle B's 3rd cousin from his first marriage is taking advantage of his clients.
Next, their Realtor called Lender 1 and Lender 2 turns out both Lender 1 and Lender 2 had minimal closing costs. Lender 2 indicated that a point was being charged to lower She & He's monthly payment as they had indicated that they had cash to put down upfront, but that they were very payment conscious and wanted a payment under $1100.00 per month. Their Realtor called She & He back and gave them the scoop; their Realtor recommended using Lender 2 as that Lender seemed to have a better read as to what was really important to She & He. A lower monthly payment!
What will She & He do?
The answer will be in Chapter 2...stay tuned!
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