Well...we've officially started our home search. We've been discussing options for living spaces once we get married and decided we'd actually be saving quite a bit more money if we invested in a home mortgage payment with taxes instead of the $600+ rent we currently have (plus additional utilities and such). So...we visited our first couple homes Saturday morning with a lovely woman named Brandy from http://www.prudential.com/realestate/. She took us to see three homes in Newton, Iowa conveniently located near the high school, middle school, and park.
DISCLAIMER: We knew entering this experience that we hadn't been preapproved and that we couldn't be picky. A starter home is a starter home and we've been spoiled most our lives with big back yards and a killer kitchen ;). All internal and external contemplations aside, we were going simply for the experience and to discern what price, property type, and living space would work most favorable with our current financial situation.
The first home we saw had brand new everything from a driveway to plumbing to linoleum kitchen floors and so on. Problem was...it was only 700 sq. ft, barely had a yard and was located directly next to the high school track field (i.e. Friday nights might be awfully loud lol). It was also listed for $68,000. :/ So that was a "no-go." Though the lady said the investor would take considerably less in price, there just wasn't enough space for us to raise multiple kids...someday. ;)
Here's the first home. Cute but over priced and entirely too small.
The second home we saw was a HUD (Housing and Urban Development) home in a culdesac located conveniently near the middle school. It was originally assessed @ $135,000 but...is market listed for $48,000. This house was HUGE! It had three little steps up from a main floor into a kitchen, patio and dining space, then another three steps up to a full bath and 3 bedrooms. Then it had 3 more steps down to a living space, seperate washer/dryer space and a game room or "man cave." lol. Needless to say it had lots and lots of space. However....the yard was a bit smaller, there was some mold, the gutters needed some work, the AC was outdated and the roof would need a patch job within the next couple years. In addition the driveway's concrete base had shifted. Thus, while it needed work it was decently priced and we liked the amount of space. The largest con was that the property taxes were high due to the prior assessed value (135k).
Here's a few pictures of that property.
The final house we saw was priced at $41,900 and was almost as small as the first home. Though it had a new furnance, kitchen and carpet (mind you they were carpet squares--ick)...it only had two bedrooms and the laundry/bathroom were together. Meaning, that the placement of two huge machines would make the bathroom space TINY! We also noticed walking through this home that the foundation seemed uneven (which could be very problematic). The outside definitely needed some cosmetic work and it was nearly 100 yards from railroad tracks. Not good. (aka wouldn't be the most peaceful place for a baby...in the future) In addition, it was the furthest home from Jason's work...resulting in an almost 40 minute drive. Also not good.
Overall, we left the experience well informed about what we did and did not like about certain prices, interior and exterior appearance, as well as "realistic" expectations when it comes to what preliminary work was feasible with our budget. We were in most favor of the split level HUD home but ultimately decided that in winter months the drive might not make any home that distance worth it, especially with gas prices on the rise. We'll continue to look, thats for sure.
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The next step we took this past weekend was applying for pre-approval. After asking around, we found out that UICC (University of Iowa Credit Union) by Grinnell's Subway diner offers a 3.7%-4.0% interest rate on mortgage loans so we filled out an application online for pre-approval through them. We decided to go through them because its local and have heard a lot of good things which we thought would be beneficial for us applying as first time home buyers. Hopefully, after hearing about what we can afford we'll finally get to see this house near Brooklyn we've been eyeballing. It's definitely our favorite so far because of location and potential. (At least from what we've gathered in conversation and pictures) We've been given the impression that with some updating, the property value can increase dramatically. This house has the yard, kitchen and living space we've been looking for. Hopefully this Realtor can show us the interior (in person) soon.
Here's a couple pictures of the exterior. It's only 8 min. from Jason's work and about 12-14 min. from Grinnell. It's 1,576 sq. ft and on a pretty hefty lot out in the country. We've got our fingers crossed it works out...but know that we can't settle without looking at other homes and reviewing the pros and cons of everything before placing a bid.
Overall it's been quite the process so far but were mainly happy because our prior financial woes are turning around. Things are starting to look up and making us much more optimistic about whats to come. It will also put my mind at ease knowing we'll have our own space to build a life together after were married...a "blank slate" so to speak.
Well we're making homemade pizza tonight and I start my 40hr work week as Spring break comes to a close, then it's back to the books for the final 7 weeks of my collegiate career. Time flies. Hope this week finds you all well and the weather continues to look up from here.
Toodles! :)
How exciting! Thanks for sharing ;) Wishing you the best experience and most fun as you shop around for houses!
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