As I last reported, Boyfriend had secured a mortgage commitment for his condo. The closing was yesterday and he now is officially a property owner, yay! There were SO many papers to sign but luckily we had seen most of them prior to the closing. We were lucky to get all the seller concessions because the whole purchase cost Boyfriend less than $6,000, which includes:
$5,260.03 - downpayment plus tax escrow and some other assorted fees.
$230 - title insurance
I also think I did a pretty good job representing him. It's a little intimidating because you're sitting there with the bank's lawyers and the seller's lawyers (the sellers were not there) and the mortgage broker and all they want you to do is sign sign sign because they do this all the time. But I made sure that Boyfriend understood every piece of paper put before him and that he was free to slow down and take his time. All told, it took about an hour and a half.
The one thing we didn't know was when the first mortgage payment was due. It being August 26th already and we have very fun and exciting weekend plans coming up we didn't know if we were expected to shell out $1,000 right away. Also, Boyfriend still has to deal with the cost of moving and is paying rent at his current apartment (half the month of September). As luck would have it, Boyfriend's first mortgage payment is not due until October 1st. We both breathed an audible sigh of relief when that paper was slid across the table.
Last night we celebrated with wine and Chinese food at the new place. We are both pretty excited for him to move and will be picking out paint today. We know that it's tempting to spend a lot of money when you first move into a new place and have decided just to paint and tear up carpet and nothing else for now. His old furniture is going with him and will be replaced eventually.
All in all, it's been quite an exciting August!
5 comments:
oh! i remember the first mortgage payment excitement - mortgages are always paid in arrears. i was so stoked, but tried to be good and put the money in the savings acct. came in handy when we had a flood only months in!
That is really exciting! Congrats to your boyfriend. =)
I remember the amount of time it took to get through my closing. Since I have two loans there are two separate sets of documents, so I had a lot more papers to sign than if I had one mortgage. I only did this to avoid PMI and after the fact I made the right choice. The first month's payment is always a question, but typically the payment doesn't come due until the beginning of the following month. Hopefully your BF won't find the payment putting him into a financial pinch. I remember my first mortgage payment and it felt like I was paying near double my old rent. On the bright side though owning property rather than renting it is better long term. My AC was also broken after the first month. Hope he doesn't get hit with an expensive problem in his place.
How cool! When I signed my first mortgage I wanted to know 3 things...what is the total payment amount, when is it due, and is there an early payoff fee. What I didn't realise was that the taxes and insurance would go up every year making my payment go up too. That was a bummer.
Oh, does your boyfriend still stay there? I think the whole process became easier with your help. He must be very thankful of your support! Saving after buying the condo is a good thing to do. There can be some who tend to spend more after buying a condo for renovations, but others still prefer to save up for a better renovation project. Where would all of your boyfriend’s stuff and furniture go if you would replace them that instant, right? I guess you’re already done with that dilemma now. :D
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