We are preparing an offer for a townhome at 4407 42nd Ave SW Unit C.
Todo
- Check on current rates with Scott at NBKC Tasks ✅ 2021-08-31
- Emailed Scott 2021-08-29
- Scot:
- If seller agrees to more than closing costs, can pay points or escrow for taxes or pay homeowner’s insurance
- Current rate with 20% down: 2.75% and lender credit of 1,800 points to get to 2.625%
- Less than 20% down, mortgage insurance. If we put down 15% instead, rate is 2.625%, 50/month. Goes away when we have 20% equity. Wouldn’t come out that far behind. Kind of a wash. 1,960 on 20% down payment. Difference of about $160. Can shift after the offer. Will put something down in the offer, but the seller won’t care.
- pre-approved up to $592k
- Ask Scott to estimate closing and whether he can use up the difference. Some will use it to buy points. Tasks ✅ 2021-08-30
- Compare rates with Ron Howard Tasks ✅ 2021-08-30
- Scott’s rate is still better. Ron says to go with Scott.
- Get insurance quote Tasks ✅ 2021-09-01
- Emailed Michael Wong. He is out but will get back to me by Thursday.
- confirm they have certificate of occupancy Tasks ✅ 2021-08-31
- Lili will confirm
- Ask Scott Casida when to liquidate assets Tasks ✅ 2021-08-31
- Emailed Scott at 10:13 AM
- Go ahead and liquidate funds whenever. Either transfer into checking now or just liquidate it so it’s in a cash position today. Can transfer directly to savings.
- Told him I wanted to put down 20%. He said I can still change my mind as long as it’s not right before closing.
- Will take escrow for taxes and insurance to get a better rate
- May need some updated documents and pay stubs. Everything else is ready to go.
- Can get 2.75% (1,800 lender credit toward closing costs or 2.625% (%1,960). Would break even 8 years into the loan at the lower rate.
- I chose the 2.75% and $1,800 lender credit
- Rate locked for 45 days from 2021-08-31
- Send august statement and brokerage account statement
- Need July and August statements for brokerage accounts
- They ask for a deposit on appraisal (~$700)
- Find home insurance and forward to Scott Casida Tasks ✅ 2021-09-10
Lili’s Timeline
Huge congrats again for getting mutual on this beautiful home and a great deal! Very happy for you! The mutual contract is attached below. To make it easier for you to keep track, I want to outline the key milestones we have coming up. And a PDF version is attached for your convenience as well.
- 8/31/2021: Official “mutual” date and start of our calendar. In the transaction process, you will receive a lot of paperwork to sign from the escrow, lender and myself, please make sure you check your emails and sign the paperwork on time since many tasks involved are time sensitive.
- 9/1/2021/-9/2/2021: Deposit earnest money at Escrow (check or wire for $ 12,200 to Escrow). The latest time for wire transfer is morning of 9/2/2021) Wire transfers land the same day if executed in the morning. Please call escrow for confirmation before you wire the funds to avoid wire fraud. Dropping a cheque at a local office is a safer option. Tasks ✅ 2021-09-01
- 9/1/2021/-9/3/2021: Inspection. Your inspection is arranged for 4:00 PM on 9/2/2021. Tasks ✅ 2021-09-02
- 4407 42nd Ave SW Unit C inspection
- Sewer scope forthcoming
- 9/8/2021 or sooner: Due date to have your formal loan application completed with your lender. This will include all the paperwork needed to submit to initial underwriting approval. You will likely need to provide a 2nd round of documents for final underwriting after we have the appraisal report. This is totally usual, and the verification documents they ask for will vary based on your situation. Tasks ✅ 2021-09-10
- 9/9/2021 or earlier: Your lender will contact you about paying for the appraisal. (Closing costs include: fees for appraisal, escrow, title, loan initiation, prepaid taxes, homeowner insurance etc.) Tasks ✅ 2021-09-01
- 9/15/2021: Start shopping around and purchase homeowners insurance and provide a copy of the declaration page to the Lender. Tasks ✅ 2021-09-10
- 9/20/2021 - 9/24/2021: Appraisal will be scheduled and report published. Tasks ✅ 2021-09-17
- 9/23/2021 - 9/24/2021: Builder Orientation final walk through. Tasks ✅ 2021-09-28
- 9/27/2021 or sooner: You will receive the Closing Disclosures from the lender, this will be the detailed/itemized amount you need to bring to closing in the form of a cashier’s check or a wire. Receipt of this document will start a mandatory 3 day waiting period before we can officially close. Tasks ✅ 2021-09-24
- 9/28/2021-9/29/2021: Escrow will contact you to schedule your signing and closing appointment. They will confirm the value that they will need you to bring to your closing appointment in the form of a cashier’s check or wire. Usually the escrow can send a notary to your home or they will ask you to go to their office. The appointment should be scheduled for either the 9/29/2021 or 9/30/2021 and last less than 1 hr. And do double check the email for wiring fund and call & confirm it’s from the escrow, to avoid wire fraud. Tasks ✅ 2021-09-28
- 9/30/2021: Closing day! You will receive the recording numbers before 5:00 PM. Your official time of possession is 9:00 PM. Tasks ✅ 2021-09-30
- 9/30/2021: Call to transfer utilities into your name (I will provide contact info for the utility companies and a reminder email closer to the time you will need to do this). Tasks ✅ 2021-10-01
From this point to closing, it’s very important to keep all your accounts as stable as you can and do not do anything to jeopardize your credit such as opening new credit cards, assuming new loans or making big expenditures etc.
You, myself, your lender, and escrow are a team, and we need to coordinate to make sure this transaction goes smoothly. Your lender may have a timeline for you as well. If your lender or escrow makes a request, please do your best to get them whatever they need as quickly as you can. Let me know if you need my help to meet any of their requests.
Thanks so much, and huge giant CONGRATS!!
Links
Offer
4407 42nd Ave SW Unit C signed offer.pdf
- $610k, seller pays closing costs, installs AC, washer, dryer, and shower curtain rods
- Will put down 2% earnest money ($12,200)
Contingencies
- Inspection contingency gives 3 business days from acceptance of an offer to get an inspection and decide
- HOA review contingency based on resale certificate
- Financing contingency protects earnest money in case I can’t get the loan
- Appraisal contingency protects us from low appraisal
- Will waive
- Waived verification contingency since we have already been able to see the property
Seller’s Counter
4407 42nd Ave SW Unit C counter offer.pdf 4407 42nd Ave SW Unit C signed counter offer.pdf
- seller will pay 10k)
- Seller will install washer and dryer, continuous hand rails for stairs, and shower curtain bars (will not install AC)
Expenses
stair railingsseller will install- ~~inspection- 700
prepaids- $2500
| Item | Price | Notes |
|---|---|---|
| grab bar for master bath | 25 | Needs installation |
| cable modem | 80 | Motorola MB7621 Cable Modem |
| blinds | 1500 | Needs installation; Serena Shades by Lutron; IKEA smart blinds |
| movers | 1000 | |
| meals during move | 300 | |
| door camera | 200 | Logitech Circle View Wired Video Doorbell - HomeKit Enabled; May need installation |
| cleaning | 325 | move out cleaning plus carpet; Seattle Family Cleaning Service |
| umbrella w/ base | 350 | |
| leak sensors | 80 | Aqara Water Leak Sensor |
| total | 3860 |
- Probably going to need more furniture for storage since we’re losing several closets
Upcoming
These expenses are not related to the house but coincide with the purchase
| Item | Price | Notes |
|---|---|---|
| Ambria’s wisdom teeth | 2600 | 9/27 |
| rent | 2765 | 1 full month ($1,975) and remainder of partial month ($790) |
| total | 5365 |
Recurring
Monthly
| Item | Price | Notes |
|---|---|---|
| garbage | 40 | |
| iCloud sub | 3 | To support video doorbell; additional cameras will require higher tier |
| total | 43 |
Yearly
| Item | Price | Notes |
|---|---|---|
| insurance | 372 | PEMCO; PEMCO homeowners insurance quote |
| security monitoring | 200 | Abode |
| total | 572 |
Eventually
| Item | Price | Notes |
|---|---|---|
| garden bed | 100 | Jumbl Raised Canadian Cedar Garden Bed |
| outdoor storage | 33 | 74 qt. Black Weathertight Tote |
| outdoor back pillows | 47 | Pillow Perfect Outdoor/Indoor Baja Linen Lime Throw Pillows |
| total | 180 |
Maybe
| Item | Price | Notes |
|---|---|---|
| AC | 16000 | Includes installation |
| stair lift | 15000 | Includes installation |
| smart lock | 330 | Level Lock Touch Edition |
| smart switch starter kit | 145 | Lutron Caseta Start Kit |
| security system | 300 | Abode |
| total | 31775 |
A/C
2021-09-30
I have scheduled a consultation with Better Air NW in January and requested more information from AAA Heating and Air Conditioning.
Requested more info from Innovative Air, Go Green Heating, and Home Comfort Heating. That last one was submitted via Yelp. They asked if I wanted to share the request with other contractors which I chose to do.
Credit Cards
credit card research 2021-09-29
I’ve researched credit card options to find a card with zero interest on purchases to allow us to make some move-in purchases. These are the best options.
Card No-Interest Period Rewards U.S. Bank Platinum Card 20 0 Homestreet Platinum 20 0 Thoughts
2021-09-30
Discovered the Homestreet Platinum card. This bank has a branch on California Avenue at the Morgan Junction. The card matches the longest interest free period I’ve found.
I’ve decided against the Chase card. The intro reward isn’t worth chasing, and we don’t spend enough on groceries to make a point or two worth much. ($42/year per percentage reward based on Trader Joe’s spending). We’ll focus instead on a long interest-free period.
2021-09-29
We may get both cards, spend enough on the Chase to get the intro reward, put most purchases on the US Bank card to have extra time to pay them off, and shift grocery purchases to the Chase going forward since it has a 5% reward rate on groceries.
Link to original
Developments
2021-09-30
Picked up the keys from Lili Glomstad today and got all the final paperwork from the title company. The house is ours!
2021-09-29
Scott Casida said the bank has authorized the funds to be paid. Lili Glomstad wants to meet tomorrow at noon to hand over the keys.
2021-09-28
Paid our down payment. The title company has received it.
2021-09-10
Checked into another homeowners insurance option today and discovered PEMCO. I’ve already sent it over to Scott Casida and told him to move forward with them.
2021-09-02
4407 42nd Ave SW Unit C inspection was today. Inspection went well with just a few items to fix.
2021-08-31
- Lili will send a task list with dates for what we need to do
- Will be working with the lender to finish loan application
- If I have to pay for appraisal up-front, I will be reimbursed from seller’s closing cost payment
- Will need to deposit earnest money
- Escrow company will reach out
- Deadline is day after tomorrow
- 3 days for inspection
- Have until Friday to do inspection
- Do before Friday
- Escrow will reach out to set up a signing appointment with a notary
- Try not to open new credit cards, obtain new credit
Down Payment
Will need to make down payment via wire transfer or cashier’s check. Here’s what Myisha with Ally recommended via in-app messenger 2021-08-31 at ~2:00pm:
You can send an outgoing wire transfer from your Ally Bank account(s) to any other financial institution in the United States. However, we don’t provide outgoing international wire transfer services. There is no dollar limit for wire transfers, and both the electronic and printable wire request forms are available for you online. Also, there is a $20 fee for each outgoing wire transfer.
If your wire request is submitted and verified before 3 pm ET on a business day, we can send the funds out that same day. If your wire request is submitted and verified after 3 pm ET, or on a weekend or holiday, we’ll send the funds on the next business day.
If we need to verify any information with you during the approval process, we’ll give you a call. Just be sure to keep your wire information close by since we may need to confirm the exact details with you.
A cashiers check will take 5-7 business days to come in the mail. It can only be delivered to the the address on file but it can be made out to any name.
2021-08-30 counter offer info
- they will pay utilities by themselves, without escrow
- Seller disclosures
- $64/month sewer capacity fee
- We will have to prepay first year of homeowners insurance (
$800-1000) and 3 months property tax ($1,500)
General questions
- We are making a list of our miscellaneous costs. What do you see that we have missed? (Garbage/recycling/compost pickup?)
- Lili will check
- Garbage company will tell us which days for what and provide bins
- $30-40/month
- is Internet already available here?
- Lili doesn’t know
- Are the units wired for computer networking?
- Lili will confirm
Question on CCRs
- Where is waste storage? CCRs say “northwesterly portion of Unit 1 TH,” but I’m not sure what that is.
- does 5.1 mean we need written approval to install AC?
Purchase agreement
- Optional clauses addendum, page 1: Why is insulation not described here? It says it’s required to be filled for new construction.
- builder’s addendum 8 says sewer capacity charge is every six months. Do we pay that directly every six months, or does that get paid monthly into the escrow?
- We will pay every 6 months. Lili was wrong when she said monthly previously.
2021-08-29 offer brief with Lili
- Talked with sales representative
- no parking for this unit until next door units are completed
- Builder had an agreement with the owner of the property next door for 5 years free parking after next-door property is completed. $30/month for the second 5 years.
- Offer deadline tomorrow 9pm
- Sewer capacity charge: $60-64/month for 15 years
- Financing contingency- 25 days
- $10k for closing costs
- Leftover sometimes can be creative to use it up
- 3 day inspection contingency
- Builder will walk through before turning home over. We can point out anything discovered during inspection and they will fix
- Ask for stair railings, do not ask for grab bar in bath
Documents
CCRs (Covenants, Conditions, Restrictions, and Easements)
4407 42nd Ave SW Unit C Declaration CCRs (amended, DL Builders).pdf
Seller’s Disclosures
4407 42nd Ave SW Unit C signed seller disclosures.pdf
Home loan initial disclosures
4407 42nd Ave SW Unit C initial disclosures for loan.pdf
Earnest money receipt
4407 42nd Ave SW Unit C Chicago Title earnest money receipt.pdf
Appraisal
4407 42nd Ave SW Unit C appraisal.pdf
Contacts
- Sina Cabilin with Chicago Title Washington- 4258801053 (pronounced “Seena”)
- Tiffany with Chicago Title Washington- 253-856-9763