We are preparing an offer for the condo. See 5025 California Ave SW Apt 206 condo decision for how we got here.
Offer
- 8k closing costs
- Expires at noon tomorrow
- Both of us will need to sign the documents to have both of our names on the title
- Lili will send forms for us. These will be sent through Docusign but don’t need to be signed
- Will close 2021-08-03
Earnest Money
Will put down 2%
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
Next Steps
- Get a pre-approval letter for the amount of the offer Tasks
- Send Tiffany’s email Tasks
- Send mailing address Tasks
- Sign disclosure acknowledgment Tasks
- Sign paperwork Tasks
- Find out cost of homeowner’s insurance Tasks ✅ 2021-07-30
- Michael Wong said to expect about $350/year if the HOA has a master policy
- Find out if FHA loan would be a better deal Tasks ✅ 2021-08-15
Developments
2021-07-29
- Discovered our interest rate may be more than the one that Scott at NBKC quoted me because condo interest rates are higher.
- Interest rate could be 0.5% higher if they mirror Fannie Mae.
- Got a quote from Better.com at 3%/3.023% paying 39 in points (\1,484/month)
- FHA loan from Better.com is 2.625%/2.782% with 915 in credits (\1,414/month)
- FHA loan charges mortgage insurance: 1.75% up front and a percentage per month
- FHA loan lets me put up a much smaller down payment (maybe $66k less)
- Need someone to help me run the math on this to figure out what scenario is best, including investing the money I save
- Better.com estimates $4,757 in fees for closing
2021-07-30
The seller countered our offer of 445k and we pay our closing costs. I’ve already messaged Lili Glomstad to let her know I want to pass on this.