Well, I've spent the better part of the morning explaining what's going on with the home-buying process to people. If I keep this up, I won't get anything done the rest of the day, so here's my attempt to quell the masses.
Sparing a lot of detail on what all the paperwork means, and how many times we've signed each form, revised form et cetera, it is sufficient to say that we have bled ourselves dry scanning, faxing, notarizing, and signing documents. We have now provided sufficient proof of financial capability and signed bajillions of forms, extensions, contracts, agreements and so on to please the many parties involved (including the sellers, the realtors, the loan officers, the attorneys, the underwriters, and so on).
We're at the end of the line, and we're ready to close... we were SUPPOSED to be closing today. But after many back-and-forths we have extended the contract until next Tuesday because the underwriters are not satisfied with what they got back from the appraisers. Sadly this doesn't mean we'll definitely be closing by Tuesday. If there's anything I've learned from this process, it's that nothing is set in stone.
On another note, I recently realized that I never contemplated who the hell "the underwriters" actually were. Thinking about it a little, the name says it all: they sign the bottom line. So that would be our lender, Eastern Bank, right? Guess again. -- One thing I didn't know going into this was that Eastern Bank was going to sell our loan to Citi. They are the "underwriters." They're the ones who will foot the other 80% of the dough to buy this house, and in 30 years, we will have paid them nearly twice its value. It's pretty frustrating to realize that the most money that I've ever spent is going to go directly to a money-hungry mega-bank like Citi when I'd much rather be supporting a smaller local institution.
[ Note (from a soapbox): Some lenders will guarantee that they will not sell your loan to another institution. Keep that in mind when you decide to buy a home. You will be spending more money than you ever have in your life, but you have a choice on how to spend it. It's sad but true that, in this world, money is power, the power to show your values. Never forget that we have a choice. Every purchase made is a statement of our values as a society. Do we value quality products and services, or quantity and speed? Do we value sustainability and the environment or will we leave that to the next generation to worry about? I'm ashamed to be giving Citi bank hundreds of thousands of dollars when I know that their institution does not reflect my values in banking. Whatever your values are, don't let yourself make the same mistake. Don't forget you have a choice. ]
Off the soapbox.
So what's up with the underwriters. Well, they've gotten the appraisal of the house, which includes 6 "comps" or comparable homes. Three of the comps are a better deal than our house, two are a worse deal, and one is about the same. They've decided that they want to see one more comp before moving forward. Remember, the underwriters want to get a good deal (and so do we, admittedly) since they're investing in the house. If the 7th comp indicates that we're getting a good/fair deal on the house, then we move forward and close. However, if it indicates that we could get a better deal on the house, then they would expect us to pay less for it (revise the purchase amount). Alternately, we could try our luck with another underwriter.
We are at the mercy of the banks. "We", being Ashley, myself, and the sellers of the house, who are in an arguably even worse situation than we are since there's a chance that we could come around and say, "We love your house, but the banks think it's overvalued and they want us to pay $X less than the previously agreed price." If $X is $10,000, then they're either screwed out of $10K, or they have to go back to market with the house knowing full well that this could all happen again.
Ashley, myself, and the sellers have all spent MONTHS on this transaction. We've packed our lives up into boxes and prepared to move, and the sellers have probably moved already. So much emotional energy and money has been invested. It feels like we've been pulled back and forth by unyielding forces, and after so many compromises, commitments, phone calls and signatures, we've finally reached the end. And before us is a nameless, faceless automaton in a business suit sitting atop an impossibly tall podium with a stamp in his hand.
Friday, August 14, 2009
Wednesday, August 5, 2009
Sunday, June 28, 2009
The Virgin Homeowner
So much for keeping up with my life on here. If I had been writing even once a month, I might have at least mentioned that Ashley and I put an offer on a house on True Road in Salisbury. I might have also talked about the insanely frustrating process of counteroffers. Then there was the ridiculously expensive and disappointing home inspection. But I haven't written a damn thing for months, so it looks like I've got a lot of catching up to do.
The house we found is a modest 1400 square foot ranch sitting on a not-so-modest 1.37 acre plot which is quite beautifully landscaped with gardens all around and a pond with ducks and frogs in the back. It has a large, sunny living room, a beautiful country kitchen with an island that opens into a dining room with a fireplace, 3 bedrooms and a bathroom. All the appliances in the kitchen are new, as are the washer and dryer in the big basement. To top it all off, a 2 level deck and patio are attached to the back of the house overlooking the amazingly peaceful backyard. We loved the place the first time we saw it, and couldn't help but fantasize about getting married in the back yard.
While the property appeared near-perfect, the location was even better: a 5 minute drive from my parents, and less than 10 minutes to the train station and the beach. So we got a pre-approval letter from the bank and made an offer. They countered, then we countered, and they countered again, and we agreed and rewrote contract... and then they decided they weren't going to sign it and were going to stick with their asking price. Apparently they weren't in a rush to sell and were confident they could get asking price in the fall if need be. Whatever, we caved and said yes.
Frustrated with the first steps of the process, we set out to looking for an inspector. After talking to several different people, we landed on a guy from Gloucester with over 30 years of experience. Not only was he the most experienced inspector I talked to, but also the most available... and unfortunately the most expensive. Nevertheless, we met at the house last Wednesday along with our agent and the sellers agent, and started picking the house apart. We learned everything about every system in the house, from the oil tank, to the boiler, to the electrical service, plumbing, insulation, chimney, roof, siding... everything. We started inside and by the time we got outside, there weren't any major issues to speak of, just an aging oil tank, an outdated electrical service, and a bit of "damp house syndrome" which would mean we'd need to run a dehumidifier in the basement 3 seasons out of the year to help prevent mold and mildew in the basement and attic.
Unfortunately, once outside, our inspector noticed a window with some pretty nasty termite damage. The sellers statement mentioned installing a termite extermination system 6 years ago, but somehow this didn't strike us as a big problem. "So what?" we must have thought, "They're gone now, right?" Well, maybe, but even if they are that doesn't mean that didn't turn the house into swiss-cheese before they were eliminated. This was the worst news ever. It wasn't something that we could even put a price tag to, because the damage can't be assessed without tearing open the walls.
I was home sick the following day, so I made some phone calls to other experts, not the least of which was my uncle. His sister had contracted him to replace some damaged siding on her house some years back. He brought his tools and started tearing off the damaged parts starting at the a small visible spot on the outside, but as he took the siding off, he found the structure behind them was completely destroyed. It wasn't until he removed the entire front of the house that he could comprehend the extent of the damage. "I hate to tell ya this, but it sounds like a 'walk away' deal to me, Adam." It was hard to hear, but it was what I needed to hear for reality to really sink in.
Still, the seller's agent wasn't buying that it was actually termite damage even though the inspector seemed sure of it, and even though it was directly above a termite bait station. We ended up having a pest inspector come in the following day to confirm, yes, it was caused by termites, and state multiple times to us in front of the seller's agent "I would not, NOT buy the house because of termites." Thanks JACKOFF, I'll look forward to doing business with someone else if I do buy the house.
No surprise, in the end things fell through. We weren't willing to risk buying the house as-is, and they weren't willing to meet our requests. It was a learning experience. Next time around, I think we'll be much better prepared to start out asking the hard questions straight off before going through inspection. We've learned who to trust for advice, and what to expect from the different parties involved. I just hope we're able to find something better in the months to come.
The house we found is a modest 1400 square foot ranch sitting on a not-so-modest 1.37 acre plot which is quite beautifully landscaped with gardens all around and a pond with ducks and frogs in the back. It has a large, sunny living room, a beautiful country kitchen with an island that opens into a dining room with a fireplace, 3 bedrooms and a bathroom. All the appliances in the kitchen are new, as are the washer and dryer in the big basement. To top it all off, a 2 level deck and patio are attached to the back of the house overlooking the amazingly peaceful backyard. We loved the place the first time we saw it, and couldn't help but fantasize about getting married in the back yard.
While the property appeared near-perfect, the location was even better: a 5 minute drive from my parents, and less than 10 minutes to the train station and the beach. So we got a pre-approval letter from the bank and made an offer. They countered, then we countered, and they countered again, and we agreed and rewrote contract... and then they decided they weren't going to sign it and were going to stick with their asking price. Apparently they weren't in a rush to sell and were confident they could get asking price in the fall if need be. Whatever, we caved and said yes.
Frustrated with the first steps of the process, we set out to looking for an inspector. After talking to several different people, we landed on a guy from Gloucester with over 30 years of experience. Not only was he the most experienced inspector I talked to, but also the most available... and unfortunately the most expensive. Nevertheless, we met at the house last Wednesday along with our agent and the sellers agent, and started picking the house apart. We learned everything about every system in the house, from the oil tank, to the boiler, to the electrical service, plumbing, insulation, chimney, roof, siding... everything. We started inside and by the time we got outside, there weren't any major issues to speak of, just an aging oil tank, an outdated electrical service, and a bit of "damp house syndrome" which would mean we'd need to run a dehumidifier in the basement 3 seasons out of the year to help prevent mold and mildew in the basement and attic.
Unfortunately, once outside, our inspector noticed a window with some pretty nasty termite damage. The sellers statement mentioned installing a termite extermination system 6 years ago, but somehow this didn't strike us as a big problem. "So what?" we must have thought, "They're gone now, right?" Well, maybe, but even if they are that doesn't mean that didn't turn the house into swiss-cheese before they were eliminated. This was the worst news ever. It wasn't something that we could even put a price tag to, because the damage can't be assessed without tearing open the walls.
I was home sick the following day, so I made some phone calls to other experts, not the least of which was my uncle. His sister had contracted him to replace some damaged siding on her house some years back. He brought his tools and started tearing off the damaged parts starting at the a small visible spot on the outside, but as he took the siding off, he found the structure behind them was completely destroyed. It wasn't until he removed the entire front of the house that he could comprehend the extent of the damage. "I hate to tell ya this, but it sounds like a 'walk away' deal to me, Adam." It was hard to hear, but it was what I needed to hear for reality to really sink in.
Still, the seller's agent wasn't buying that it was actually termite damage even though the inspector seemed sure of it, and even though it was directly above a termite bait station. We ended up having a pest inspector come in the following day to confirm, yes, it was caused by termites, and state multiple times to us in front of the seller's agent "I would not, NOT buy the house because of termites." Thanks JACKOFF, I'll look forward to doing business with someone else if I do buy the house.
No surprise, in the end things fell through. We weren't willing to risk buying the house as-is, and they weren't willing to meet our requests. It was a learning experience. Next time around, I think we'll be much better prepared to start out asking the hard questions straight off before going through inspection. We've learned who to trust for advice, and what to expect from the different parties involved. I just hope we're able to find something better in the months to come.
Tuesday, May 19, 2009
Monday, April 6, 2009
Stem Cell Research
Some weeks ago, President Obama reversed the Bush administration order that stopped federal funding of embryonic stem cell research. My friend Jon asked me to make a statement on this landmark for the science since he was writing an article for the examiner.com. Anyway, I thought I'd post my response here...
I believe this will help to accelerate some very specific research that people have been doing. When Bush cut off funding to these projects it put some major obstacles on the path for some kinds of cutting edge biological research. Universities and research institutes working in these fields had to either stop working with these cell lines altogether, or to find private funding to pay for the research as well as new facilities and instruments since nothing purchased with government funds, no matter how big or small, could be used when working with embryonic stem cells.
Still, I think people should understand that these cell lines are only of interest to people doing some very specific research. And while some people's lives are hanging on the products of that research, this change in policy isn't necessarily going to produce the cures that are demanded. Nevertheless, despite former president Bush's tourniquet we have accomplished a lot in the past 8 years, and have nothing but high hopes for the years to come.
In the end the majority of the scientific community sees this as a positive thing. However, there are still some among us who have a moral dilemma with the source of these stem cells, and I think we'd be reckless to keep pushing science without keeping these moral conversations on the table.
Thursday, March 19, 2009
Career day
Two or three weeks ago I found a voicemail from someone who worked at my old high school asking me if I would be interested in participating in career day. Evidently alumni were being invited back to participate in small panels of 2-4 people to represent a particular field such as nursing, law enforcement, and the arts. I was invited to join the science and technology panel with two other people. Excited at the chance to give back in this small way to my alma mater, I said yes.
I hadn't really worked out what I'd say until yesterday when the nerves started to kick in. My public speaking experience is limited at best, and as far as audiences go, I figured high school students could be rough. I tried to stay optimistic that I'd be able to present to them as I did to my peers in my oral communications class about 4 years ago.
When I pulled into the parking lot, I found I was about 40 minutes early: Plenty of time to build up my nerves before taking the floor. Still, as people trickled in and conversations sprouted, I started to relax. I caught up with old teachers and classmates, and then went on an expedition to find a video adapter for my laptop. Five minutes before A period, it was evident that I'd be skipping the audio-visual portion of my talk -- fortunately I only had 4 slides, 3 of which were stolen from colleagues.
That nostalgic *bong* sound came over the intercom signalling the sound of A period, and Chris, Steve and I found ourselves standing in front of a class of about 20 kids between the ages of 13 and 18. We had 20 minutes each. Chris, the mechanical engineer would go first; then me; then Steve, a genetic epidemiologist would go last. Chris' talk was short and sweet, but he did manage some interaction with the classroom which was promising. I did my best to stick to the outline I had made, and used the whiteboard when necessary. I taught them the basics of high throughput microscopy screens, and then went on to explain how my group helps scientists analyze the images from these experiments. I told them a bit about the work environment, ups and downs. Lastly I wrapped up with the best advice I could give anyone interested in entering this or any field of study:
Part of the reason the A period class was so un-intimidating was because the majority of the students were on the younger end of the spectrum; B period, on the other hand, consisted of about 25 students, most of which were juniors and seniors. Nevertheless, the presentations went off without a hitch: More good eye contact, and honest questions. After the bell rang, a couple of the guys sitting towards the front right were still hanging around so I gave them a look and they came over. Both were interested in engineering, but seemed a little apprehensive about the math required. This was a common theme for both periods. I explained to them that when I was a senior, I had only taken elementary functions, an "advanced" class, but still way behind the honors curriculum. When I got into college, it just meant I had to start a semester behind for math and physics. NOT the end of the world. They seemed relieved and thanked me before shaking my hand and heading off to their next class. Those two students made my day.
I hadn't really worked out what I'd say until yesterday when the nerves started to kick in. My public speaking experience is limited at best, and as far as audiences go, I figured high school students could be rough. I tried to stay optimistic that I'd be able to present to them as I did to my peers in my oral communications class about 4 years ago.
When I pulled into the parking lot, I found I was about 40 minutes early: Plenty of time to build up my nerves before taking the floor. Still, as people trickled in and conversations sprouted, I started to relax. I caught up with old teachers and classmates, and then went on an expedition to find a video adapter for my laptop. Five minutes before A period, it was evident that I'd be skipping the audio-visual portion of my talk -- fortunately I only had 4 slides, 3 of which were stolen from colleagues.
That nostalgic *bong* sound came over the intercom signalling the sound of A period, and Chris, Steve and I found ourselves standing in front of a class of about 20 kids between the ages of 13 and 18. We had 20 minutes each. Chris, the mechanical engineer would go first; then me; then Steve, a genetic epidemiologist would go last. Chris' talk was short and sweet, but he did manage some interaction with the classroom which was promising. I did my best to stick to the outline I had made, and used the whiteboard when necessary. I taught them the basics of high throughput microscopy screens, and then went on to explain how my group helps scientists analyze the images from these experiments. I told them a bit about the work environment, ups and downs. Lastly I wrapped up with the best advice I could give anyone interested in entering this or any field of study:
- Do what you feel passionate about. If you can't, find a way.
- When someone asks "what do you do" talk about your interests and goals. The best career opportunities come out of networking. Having good character is just as important as talent.
Part of the reason the A period class was so un-intimidating was because the majority of the students were on the younger end of the spectrum; B period, on the other hand, consisted of about 25 students, most of which were juniors and seniors. Nevertheless, the presentations went off without a hitch: More good eye contact, and honest questions. After the bell rang, a couple of the guys sitting towards the front right were still hanging around so I gave them a look and they came over. Both were interested in engineering, but seemed a little apprehensive about the math required. This was a common theme for both periods. I explained to them that when I was a senior, I had only taken elementary functions, an "advanced" class, but still way behind the honors curriculum. When I got into college, it just meant I had to start a semester behind for math and physics. NOT the end of the world. They seemed relieved and thanked me before shaking my hand and heading off to their next class. Those two students made my day.
Wednesday, March 11, 2009
Green links
Driving While Taxed (Thomas Keown)
http://www.metro.us/us/article/2009/03/04/04/0446-82/index.xml
I finally watched An Inconvenient Truth.
http://www.climatecrisis.net
The Lazy Environmentalist
http://www.lazyenvironmentalist.com/pages/2005/06/the_book.php
Non-toxic household cleaners:
http://www.greenworkscleaners.com/
...aaand one more:
https://www.recyclebank.com/
http://www.metro.us/us/article/2009/03/04/04/0446-82/index.xml
I finally watched An Inconvenient Truth.
http://www.climatecrisis.net
The Lazy Environmentalist
http://www.lazyenvironmentalist.com/pages/2005/06/the_book.php
Non-toxic household cleaners:
http://www.greenworkscleaners.com/
...aaand one more:
https://www.recyclebank.com/
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