A maven momemnt

What is a maven you ask? Well, being one myself, of course I’d love to tell you about them!

Maxwell Gladwell, in his book The Tipping Point, describes mavens as one of the three types of people responsible for trends spreading, along with connectors and salespeople. Andy was given this book by a mentor, and while reading it, he frantically called me over because it was describing me to a T. Mavens are “intense gathers of information.” I’ve used the term “information obsessed” to describe me before, and it really fits quite well. Mavens know everything about everything, and LOVE to share it with everyone.

Part of the reason why I started this blog is that I wanted to be more connected in my Maven-ness. I wanted to take all this information I amass and share it with everyone. Even though I’m introverted, I approach strangers all the time to offer unsolicited advice (oops). Of course, I stay away from controversial topics, but the other day in Target I heard a lady and her husband in the storage and organization aisle looking for a particular product. Knowing that Target did not carry it, I had to let her know that, but also tell her that she can order it online from the Container Store, and give her a coupon code for 20%! Or the person in front of me makes a joke about buying 30 bottles of sparking water, but I have to let her know how great they are and give her one of mine that I purchased so she can try it herself. I just can’t help myself. Hopefully this will allow me to release some of this information so I can stop going up to random strangers at stores, but, let’s be honest….probably not!

So, being a new homeowner, one of my favorite topics to discuss is advice on buying a home. Here are the top three lessons and tips we learned along the way:

Take your time. Don’t let anyone rush you. Not your realtor, not the sellers, not even the impending move-out date of your lease. It took us 11 months to find The Bungalow. If you rush, you will settle. This is the biggest purchase of your life, and make sure to take the time to make it right.

Expand your search area. I think this could have been a potential biggest mistake homeowners make. Everyone tells you to make a “must have” list and don’t deviate from it. Well, that wasn’t really realistic for us, and I encourage you to go look at houses with specs AND locations that may not exactly meet your must-have list, but they can give you a better idea of what you can live it. I thought for SURE two bathrooms was a must-have, but we ended up with a one, and really, it’s fine. Try a little bit outside of your comfort area and see what you like! We looked at so many different types (new construction, town homes, Victorian-style houses, cottages, detached town homes, subdivisions, and everything in between) of houses in a lot of areas (6 school districts), we really could make an educated decision

Know what you can afford. And the follow-up…don’t let anyone tell you different. Even me, LOL (this is for my cousin)! I think we were approved for more than THREE TIMES the amount we used. That gives me palpitations just even thinking about having a mortgage so much more than what we have. I know The Wise say that you can afford it as long as you keep your PITI (principle, interest [mortgage payment], taxes, and insurance) to around 30% of your gross income. Well, to me, that’s just nuts. I’m comfortable around 10 to 15%, which is where we are now. If you don’t have a budget and these numbers are making your head spin, get one ASAP! We wanted to something that we could afford on one salary (even though pharmacy is a pretty recession-proof career), and honestly, we didn’t need a 3500 sq ft house. Our little 1300 sq ft bungalow works for us just as well. And don’t forgot that PITI isn’t your only monthly obligation…there are utilities, home owner dues, set-up costs, maintenance, etc. It adds up fast!

A word on financing…
This is one of my FAVORITE things to talk about because we were able to get such a great deal and I want all of you to have it as well! First, when figuring what you can afford keep in mind how much cash you need on had for earnest money (which you submit with you offer), down payment, and closing. The Wise tell you that you need 20% down to avoid PMI (private mortgage insurance), you can’t get a conventional loan for less than 5% down, and if you do a FHA loan, it’s hard to get a property and you still have to put 3.5% down.

Well, we were able to get a conventional loan that only required a 3% down payment, one mortgage at a low rate, and NO PMI! I feel like half the time people don’t believe us, but my employer’s credit union has a fantastic first time home-buyers program. The only stipulation was that the amount financed had to be less than $200,000, which was a little less than what we thought we’d spend, but definitely do-able. Be sure to check around and find the best time for you. No one else will do it for you! And I really have to hand it to the credit unions for the best deals. Find some that you can join and see what they have to offer!

In the end, we ended up putting 5% down, but with the way things worked out at closing the only cash we had to pay was 1% of the purchase price that we used for the earnest money and that was it! Less than $2k and we had a house with 5% equity and netted $6k with the $8k First Homebuyer’s Tax Credit, as we closed in March 2008 and were able to claim the house on our 2009 taxes and have the check by May when our first mortgage payment was due. Not a bad deal at all!

Good luck, and most importantly – have fun! This is something very exciting and wonderful, and you only get to do it a few times in your life. Here's a great resource to get you started on your search. Enjoy it!