:: God in the Hizzouse ::

Ways we have seen God in the house-hunting process:

1.  God moving us to Riverside, CA, the only place in CA we could afford a decent house with a mortgage equal to or less than what we’d pay for rent for an apartment.

2.  Obama passing the $8000 first time homebuyer credit, even giving us a CHANCE at becoming homebuyers after one year of marriage…I had long wrote off the possibility!

3.  Joe passing along the message about a real cheap condo on sale.  Though we didn’t bite, it got the wheels in our heads spinning as to what actually could be possible.

4.  Hooking us up with sibs that make a ton of cash and would lend us the $8000 for a downpayment.  Definitely not talking about Timmy.

5.  Originally, it looked like we needed RJ’s parents to co-sign on our mortgage, which they graciously agreed to, because RJ’s employment history wasn’t long enough and the way Navs works is that if the wife was on staff before marriage, she gets the pink slip making it look like I just lost my job on paper, though I worked 4 years prior with Navs.  We began our part in May, got the full loan application done in August.  It was kind of disappointing that we’d have to have co-signers, you know, feeling like we’re still kids who need help from their parents, but then a couple weeks ago, our loan officer said she could probably do our loan without the parents!  Which leads to…

6.  God’s timing in the house hunt.   Our ideal timeline was to close on a place by August when our lease ended and get moved in before the school year started.  Not needing RJ’s parents on the loan meant we really didn’t need to wait so long to search and put an offer in.  In retrospect, we really believe it was God’s way of making us wait for the house He wanted us to have and not settling for less than His best just to make our own timeline happen.

7.  I always had my heart set on a little house, but we weren’t sure of the safety of the neighborhoods in our price range and by campus, and so we really thought we’d end up in a cute little condo.  When we were searching though, the condos were just disgusting, in horrible shape, really disappointing.  RJ and I would have had to put in $5000-$8000 up front just to make it liveable, which we don’t have.  I remember thinking, ugh, we’re buying a place that is a dump, is this worth it??  Plus an extra $230/month in HOA fees equals about our rent.  We started considering houses after visiting a bunch of condos in bad condition, and stumbled upon our house.  We drove by and felt safer than we expected in the neighborhood, and decided to officially take a look.

8.  Our realtor said inventory last year at this time was 3000 houses.  This year it is 400.  That means there are a LOT of buyers fighting over a few houses.  When we submitted our offer at market value, there was another one $15,000 higher, plus 6 other offers.  I think RJ and I had to emotionally detach ourselves from the house, but lo and behold, a couple weeks later, our realtor calls and says the highest bidder dropped their bid, and it was down to our offer and two others.  Eventually, ours was chosen, which was CRAZY!  A lesson learned in believing and trusting God for impossible things.  I definitely wrote off the house.

9.  The house is less than two miles from campus, an easy bike ride!

10.  Interest rates have dipped below 5%!  Our realtor had suggested we lock it in, and so I called our loan officer, who said it was still at 5%, which is still AMAZING.  The next day, she called me and asked if I wanted to lock in, because it had dipped to 4.87% overnight!  And she told us a week later that it had gone back above 5% after that day.

11.  Escrow can be a long process, especially for FHA loans.  Part of the stipulation was to try to close by October 29th, which would have been a 30 day escrow period, I think.  FHA are usually at least 45 days.  Our loan officer, who is off the hizzy, got our loan done in about 20 days.  Sande Wilson with Provident Bank.  She is awesome, and a feisty, sassy lady, really good with homebuying noobs like us.

12.  Closing on a home before the November 30th first time homebuyer deadline for this year. We’re cutting it close!

13.  Last year, they had a first time homebuyer credit of $7500, which taxpayers had to pay back over a span of 10 years or something.  This year’s tax credit is a straight $8000 refund, meaning we don’t have to pay it back!

14.  The location of the house is an up and coming location, right across the street from the new site of the UCR Medical School, which is required to open by 2012.  This means that the home value is anticipated to jump up another $100,000-$200,000, allowing us to have a decent down payment for a future house when we move from Riverside.

15.  An amazing realtor, who believes in the work RJ and I are doing with Navs and will be using part of his commission to put back into our new home in the form of garage roof repairs.  Bill O’Rafferty with Trademark Realtors.  He sold Brandon and Kristin their house, Joe and Joy their house, and Lee and Debbie their condo in Riverside, where Los is living now. He’s like the Nav realtor here! =)

16. The inside was in move-in ready condition, and though the price was higher, not having an HOA makes it about the same as the condo monthly, plus we get our own yard and aren’t connected to neighbors!

17. We were prepared to shell out a bunch of money for closing costs, but in the end we got a nice fatty check back from the escrow company (about $1600) because they asked for too much, allowing us to pay for a washer/dryer, microwave, and other “house” stuff that we didn’t need to buy for the apartment.

18. It’s like 2nd wedding in our home! When we were unpacking, we finally got to open wedding gifts we weren’t able to open last year and use last year because we had no room to use them. Hellooooo, KitchenAid mixer!! =) Though I must admit, I’ve gotten quite used to mixing by hand.

19. We can fit all our bedroom furniture into our master bedroom! I am beyond excited about this. All we could fit in our room last year was our bed and one nightstand, and everything was crammed up against the wall. Now we have our bed, two nightstands, a chest, and our dresser in the room! With room to spare!!

20. Our realtor was saying that because the value of our house as gone down, we’ll be paying 1/3 the amount of property tax the bank needed to previously. We needed to pay the compound property tax for this year at closing based on the previous home value, but we should get another nice check back with the extra money put towards property tax that didn’t need to be.

21. There’s an oak tree in the front yard! And we think it’s 50 years old! =)

22. The bank did a great job fixing up the house. New paint, new carpet, new floorboard, new sprinkler set, new stove, new fans, etc etc etc! And we didn’t even have to ask for any of it!

23. After living here for about a week, I am QUITE surprised how safe I feel here! And I have anxiety and fear issues, so if I’m not freaking out, then anyone will be okay! Our next door neighbor is an older man, and he said he hasn’t had any complaints since he’s moved in a year ago.

24. We’ve gotten to meet some nice neighbors the first day we owned the house and had people over to paint. They were way more personable than our neighbs at the apartment. We hope we’ll be able to develop good relationships with our neighbs and great community here.

25. RJ’s parents so generously bought us a brand new fridge, and it is AMAZING! Way larger than our apartment fridge, and probably more energy efficient. It’s beautiful!!

26. We LOVE storage! We have a garage for storage, and PLENTY of closet space! We just LOVE space! You know, at 1000 square feet, our house isn’t huge, but compared to before at 700 square feet, we are just so thankful!

27. We have room to invite more than a couple guests over! And we’ve already had guests over, which I love!

Okay, I wrote your ear off about how we’ve seen God in this whole house and the house-hunting process. I’m the kind of person that gets buyers’ remorse after a purchase and start looking into other options we missed out on, but I haven’t at all. When I start to wonder, “Is this really the house God wanted for us?” I look back on this list and am convinced that we are exactly where we are meant to be. And so I haven’t looked at the housing market since!

All in all, this is God’s house. And we’re thankful for it. =)

:: Lemonade Stand ::

RJ and I are Lord-willing going to buy a home by August this year.  We’re quite excited!  And this is all thanks to President Obama and the first time homebuyer tax credit of $8000, which we are just going to use as our down payment.  Now, there are two ways to get the tax credit.  The first way is to file an amended form and then you receive the $8000 later.  For those of us who don’t have $8000 lying around for a down payment (aka missionaries), this doesn’t work out so well.  So Jenny (sister/tax preparer) suggested the second route, which is asking my employer to reduce the amount of taxes withheld so we receive more each month.  Then, on our 2009 return we would owe $8000, but they would credit us $8000 so it’d just end up being $0.

It took me FOREVER to understand this.  This was Jenny and my online discussion over it.

Jennifer: <Quoting a FAQ website>  Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

me: what does that mean?
12:19 PM Jennifer: that means that u have to go to the navigators and change ur tax withholdings (how much they tax u each paycheck)
if you do the math correctly, u can get that 8000 from the amount ur not being taxed
that u usually would be
me: …
what?
12:20 PM Jennifer: cause u know how u get taxed each paycheck, if u decrease the amount of taxes u would get more in each paycheck
me: so isn’t it like they make the tax withholdings 8000 less
Jennifer: but then u might owe the government money during tax returns
me: why!
what!
i don’t get it!
Jennifer: okay
so u get taxed each paycheck
me: say your mom gives you money for a lemonade stand…
12:21 PM Jennifer: so if u change ur withholdings, u can opt to get taxed less, but when its tax return time, u will owe money because u did not get taxed enough during the year
me: so i would lose money than if i just waited for the credit
Jennifer: so they are saying that you can decrease how much tax is withheld so that during tax return time, u’ll owe the government 8000$ but then u’ll get it from the tax credit so it’ll just balance to 0
12:22 PM me: wait
so instead i am in debt 8000 for a while?
Jennifer: well the amount of taxes u owe is in debt
12:23 PM me: so how do i get the 8000?
Jennifer: but it evens out after u get the tax credit
me: you just said i get 0
Jennifer: here
hold on
lemme explain it to you over the phoen
its too hard to type
So then Jenny calls me and I put her on speakerphone so RJ can hear.  She explains this all again, and RJ says, “Ohhhhhh…” but I still don’t get it.  I must have made her explain it a couple more times.
Then RJ says: “Ok, say your mom gives you money for a lemonade stand…” and goes into this analogy that I’ve forgotten because it still didn’t make sense to me.

Then Jenny says: “Ok, say you get paid $10 a month, and you get taxed $1 a month.  This year the government is going to give a tax credit of $12 for everyone who buys a home (and here is where I said, well that’s dumb, who can buy a home for $12??  and she probably replied, you’re stupid)  One way is to wait until you buy and then get the credit after, or the other way is to ask your employer to reduce your tax so you get the full $10/month, the $12 in your pocket right away and then next year you’ll owe $12 in taxes but you can claim the tax credit of $12 and it evens out to be $0.

Does this whole scenario remind you of anything?

Follow

Get every new post delivered to your Inbox.