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A Consumer Story About A Working Man's House
By William J Archambau;t Jr, Fri Dec 9th
My son's friend Ty (they met in high school) returned form theNavy partially disabled from time on a aircraft carrier. Evenmore surprising was he came home with a wife! Together these twoset about surviving. Doing what young couples do, eventuallyalong came a daughter, a baby not to be reviled until (if) ourkids present us with grandchildren. Ty is a hard worker, who always exceeds expectations, but neverhas and may never make much money. High rents, a second storywalk-up in a noisy four-plex,and a high traffic project had Tywanting a home of his own. REALTORŪ, after REALTORŪ told him hecouldn't afford a home. Turning to his high school friend, myson, a mortgage broker with my office, he asked for help. Ty's was not going to be an easy project, he had low income and9 jobs in the eighteen months he'd been out of the Navy. Withthe help of a hungry, and friendly REALTORŪ they found a smallthree bedroom starter house with a pool. During escrow (theclosing process in the west) Ty changed employment twice more.During job 11 we went to documents, and Ty changed jobs again!Countrywide backed out of the closing, 11 jobs yes 12 jobs no!Two weeks of hustling and we finally closed with a new lender,Ty owned his own home for $87,500.00.
Ty's first payment was due 50 days after closing, before hecould make the payment Countywide bought his loan. Today manyyears later we still take flak from him about making payments tothe lender that backed out of closing. In my book
"One House At A Time / Finding And Buying SingleFamily Rentals" I explain everyone can own their own home. Ialso explain why you should always work with a good mortgagebroker. All the REALTORSŪ and their lenders who said Ty couldnever own his own house were right, they could never get himfinanced! Many a family will never get their own home simplybecause their help is either unwilling to do the work necessaryor incompetent to do the job. Ty's family got their own homebecause my son, Eric is an exceptional mortgage broker. Ty wouldlike to think that he got special service, he didn't. Eric, likemost mortgage brokers will do the same for anyone who's loyal tothem and tells the whole truth. This is a story of a working man's house and why everyone shouldown their own home, so let's look at what this simple house didfor Ty's family. Purchased in September of 1996, for $87,500 with no money downand the seller paying the closing cost, Ty's monthly housingcost went down. His monthly housing cost were no longersubjected to the landlords's whims. By September 1997 Ty had maxed out his credit cards andneeded/wanted a jeep. A relatively high priced cash out secondlowered his total payments, paid for a jeep and put cash in thebank. In February of 2003, a refinance lowered his house payments,and paid off his bills and put cash in the bank, again. It's now November of 2005 and Ty has sold his little house.Sale price $226,000.00. Ty and his family have profited$140,000.00, and because they had lived in the house two out ofthe last three years it's all tax free! Not bad consideringtheir investment (the pre-paids, 20 days interest, taxes andinsurance) was only about one third of the deposit they got backfrom their last apartment. Housing prices have gone up. Still the only hope most workingpeople have is to purchase and own their own home. If workingpeople want to get rich they'll need to buy several if not manyhomes. Until we start teaching real estate to high schoolstudents all to many people are going to get the same advice Tygot, "you can't afford a house!" The truth is the less incomeyou have the more you need your own home. There are many ways tobuy a home, and almost everyone can own a home. Unfortunatelymany among us will never know it! Ty of course will need a home, he and his family are moving tothe northwest to be closer to their families. Homes in their newarea are priced so that they can pay cash and still have nearlytwo years income in the bank. There's only one low spot in thisstory, Eric and I'll will miss them, Ty is an exceptionallygood, dependable friend. Copyright 2005 William J Archambault Jr About the author:William J Archambault, Jr has been in lending and real estatesince 1969. A mortgage broker in Las Vegas, NV He writes aboutup to the minute real estate, tempered with the wisdom of ourgrandfathers. He is the author of "One House At A Time / FindingAnd Buying Single Family Rentals" available athttp://www.reii.org e-mail: author@reii.org
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