Renter Pleased She Braved Buying Home

I have lived in the Los Angeles area my entire life and grew up reading The Times, first with my mother at the breakfast table before going to school and in later years, at my own table in one of my many apartments.

It seemed only right that when I sensed that the time could be right for me to become a homeowner I should use the Real Estate section for part of my research on how to become a savvy first-time buyer.

I did not want to go blindly into the world of real estate agents (shudder), lenders (major anxiety producers) and contractors (yikes!) without having some idea of what to expect/demand from them during my first attempt at home buying.

Each week I clipped articles on home buying and financing. A comfort level soon developed--I no longer was terrified about going out and dealing with real estate agents at open houses. Along with all my articles and faded, marked-up classified sections, I also had every “free” real estate magazine (listing area open houses and prices) from my local grocery store, carefully placed by my bed.

I now had a more than fair knowledge of asking prices in the areas I was looking in and the ability to distinguish a fair price from an inflated one. I “knew” mortgage rates--variable versus fixed. Understood the difference in 15- or 30-year terms and was feeling pretty powerful armed with all my newly acquired real estate and financial knowledge!

Which led to my next obvious step: pre-qualifying for a home loan.

There were no written words or well-intentioned advice from friends that prepared me for this most dreaded (but actually not the hardest) part of my home search. Fortunately, because of all my research, I arrived at my first appointment with the loan officer armed with just about every document, statement, proof and intimate financial detail that was ultimately requested. Ah, they were so impressed at how prepared I was!

Luckily, because of the carpeting, no one heard my legs bouncing a mile a minute, up and down on the floor as I tried valiantly to form complete sentences to the questions being asked of me. I remember smiling a lot because of my nervousness. The appointment was over very quickly and “soon” I would be told if I was indeed pre-qualified for a home loan.

“Soon” turned into just under three excruciating weeks and the approved loan amount came in ridiculously low and with a fairly high rate. I was also disappointed and a bit angry at the treatment I received from the loan officer during the long waiting period. Although I was discouraged, I did not stop there.

I started looking for another way to achieve my homeowner’s goal. I began talking to friends who had already bought a home and, through a referral from a friend of my boss, found a terrific mortgage loan company and loan consultant.

From the first phone call to the loan consultant, I felt secure that I was dealing with someone who knew their stuff and was working for me. I was honest about my credit history (the largest and most difficult hurdle I felt I would have) and was told straight up my chances of qualifying and, most important, what I could comfortably afford.

He was realistic, direct and answered all my questions with patience and encouragement. That was just what I needed during this stressful period. After a very short time, I was pre-qualified for an FHA loan that required only a 3.5% down payment and was then told “just go out and find your home!”

By now, my dream of a little 2 bedroom, 2 bath with a manageable front yard, view, hardwood floors, big windows, garage, driveway and lot of flowers and trees for under $130,000 had become quite unrealistic for the areas I was interested in. But a girl can dream.

Nonetheless, I quite happily switched to searching for a low-maintenance condominium in a great area. This was, after all, only to be my starter home and I really wasn’t expecting to get everything I wanted. I may lose a picket fence and yard but I would ultimately gain tennis courts, swimming pools and Pacific Ocean sunsets.

I soon found a condo that was well within my price range set by the lender, put in a bid, accepted the sellers’ counter of $123,900 and entered immediately into escrow. Whew! What an experience.

Suddenly I was dealing with strangers, home inspection appointments, pest control reports, documents that needed my immediate attention and the often distressing inquiries about my financial history.

Life was so much simpler as a renter. Many, many times I doubted my decision to buy a home, rationalizing that nothing was worth going through all these “hassles.” I was nervous, excited, proud and on bad days regretting every move I had ever made toward this purchase.

I did not sleep through the night once for the first four weeks. Not once. Just another reason to remain a renter, I again rationalized. Luckily, I plowed through those tiny, creeping negative thoughts at 2 a.m. and found myself on the other side of the abyss--my loan was approved 56 days after opening escrow (government loans just take longer for approvals, I was informed) and the adorable little place at the beach would soon be mine.

The entire escrow process was not as bad as I may have hinted from the above--I can laugh now about most of it. And my breathing has returned to normal and there’s color in my cheeks again! I recommend to anyone contemplating a first-home purchase to pursue the dream.

I am a young, single female with a moderate income and thought it would never be possible, but it happened. And while it may not work for everyone the first time out, the experienced gained is invaluable and will only make the second go-around that much easier.

I believe it really is the time to buy, with interest rates down, prices down and such an enormous inventory of properties. The home you’re looking for is probably out there--right now. And the more information you load up with before selecting an agent and making an actual bid, the better your experience will be.

Talk to friends and listen to their past experiences, read all you can on home prices, loan options and interest rates, start compiling all your financial records in one place (you’re going to need them) and above all, be very careful and selective when choosing your real estate and loan agents--it’s probably your most important decision in this process.