Note: This part of the series on home ownership was written in mid-August. Again, if long and rambly posts on home buying/life updates are not your deal, feel free to skim or skip!
So this has been one fairly eventful week. It all culminates in an update on the homeowner front, but there are some other life details thrown in there, because buying a home isn’t supposed to be straightforward, is it?
At the start of this week, I was thinking it would be business as usual in our disgustingly hot apartment in New West. I figured it would be lots of working from Starbucks (I need their AC), wee pup walks and absolutely no travel or homeowner updates. Clearly, I was wrong.
We actually decided to leave New West for a bit and headed out to Kelowna to visit Colin’s brother Kyle, his girlfriend, Corbie, and their brand new baby, Jordan.
I hadn’t been to Kelowna since 2012 when I went up for Residence Advisor Orientation at the UBC-Okanagan campus. To be fair, this should barely count as visiting Kelowna since we never left campus. I’ve been up to Kelowna three times before this and every single time I only saw UBCO. So this trip was a nice change.
It was a bit of a trek up to Kelowna, but we had our awesome road trip playlist, wee pup snuggles and a really good chat about life and money. I read somewhere that the best time to have serious conversations with a guy is when he’s driving. He’s in his element, he’s able to focus on the road, he doesn’t have to look directly at you and you’re not distracted by anything since it’s just the two of you. Turns out, that advice held true. Colin and I were able to have some really good talks about our money issues/goals, mental health, plans for the future, potential wedding ideas, etc.
Once up in Kelowna, we spent some awesome time visiting with Kyle, Corbie, Jordan and Kyle’s first son, Jaxon. Their house was awesome, as was the pool and the cute little cabin we got to stay in. Even without air conditioning and in Kelowna’s heat, that cabin was way cooler than our apartment. We got to try some great restaurants and visit Kelowna’s downtown.
We were super excited to meet Jordan and spend some time with Kyle and Corbie. I’m glad we got to go up and see them since they won’t be down in Vancouver until late September. At that point, Jordy will be almost 2 months old. However, we did feel like we were in the way sometimes. I really wanted to help out with the baby but it seemed like often, the best thing for us to do was just to give them some space.
All in all, it was a great trip. While in Kelowna, we also came across an awesome flight deal. And by “we” I mean that I saw the deal on Facebook and clicked through to the booking website, confirming with Colin once I had it all loaded up.
Colin and I have been wanting to get back to Europe for a while now. He visited in high school and I was there on exchange in 2014. We had talked about doing a big Europe trip in 2018. However, with all the talk of home buying, we assumed we’d have to postpone it.
But then, this amazing flight deal fell into our laps. Colin was a bit hesitant, but even he couldn’t argue with savings like this. Plus, it’s nine months away so we have lots of time to save and plan. So we officially booked flights to Ireland! We’ll be flying roundtrip from Vancouver to Dublin, April 9-19 for only $344 per person! How insane is that?
We’re stoked on the trip. Neither of us has been to Ireland before and we both have a bit of Irish in our bloodline. I would’ve wanted to stay for 2-3 weeks to see more of Europe, but I know Colin is worried about the cost. To be fair, I should be more worried about the cost so 10 days is probably the right move. We’ll spend all of it in Ireland and have an amazing time drinking beer, driving through the Irish cliffs and praying for sun.
So we got Kelowna and Ireland – what more could we want out of a week? Oh, that’s right – something related to home ownership (the title of this post!).
Just before we left for Kelowna, Colin and I booked an appointment with a mortgage professional in Vancouver. I was excited about it because this is the first step we’ve taken in actually getting this househunt/homeowner thing off of our internet browsers and into the real world. But it was also super scary. Colin remarked that we could be packing for Ireland from a new house that we OWN. Ahhhhh!
Another scary part of the mortgage meeting was filling out the online form and getting real about our finances. I’ve recently written about talking money with your SO and realize it’s something Colin and I are going to need to do if we are planning a future together. It was eye opening to see where we both were and what concerns we had.
There was also the controversy of meeting with a mortgage professional. In my research (articles I’ve found online and podcasts I’ve listened to), it seems that mortgage professionals are the way to go. They specialize in mortgages, have relationships with multiple lenders and can usually get you a better interest rate than you could get at your bank. Plus, like a realtor, they are free for buyers to work with. So what could be wrong?
Well, turns out not everyone is into that strategy. My mom immediately nixed the idea when I told her over text. She touted a friend of hers who had gone the same route and got screwed. After I explained my research findings, she softened to the idea a bit. She still wanted me to work with someone based on a personal recommendation. I get where she is coming from – it would be awesome to have a friend recommend a mortgage broker to us. But it might not be possible. We just don’t have that many friends buying homes. And personally, I prefer to go with the stats and research I am finding online over an anecdotal story from a friend who had a good or bad experience.
Colin’s mom also pushed back against the mortgage professional idea. She wants us to get a mortgage through a bank – specifically, her bank. Colin explained the research we had done but she still thinks her bank is best. And, seeing as she just bought and sold a home with them, I can see why. She has a great relationship with her bank and believes that she can use that to help us get a great deal. I’m less sure.
So all that to say, we are still meeting with our mortgage professional on Monday. But we haven’t signed anything yet and we’re not committed to her. We’ll likely take a meeting at Colin’s mom’s bank as well. It won’t hurt to try out a few avenues and see what is what.
And lastly, another big whopper on the house front: our down payment number changed. So all along, we have been counting on Margie (Colin’s mom) to help us out with our down payment. At first, we thought the money was a gift but now we understand it’s an investment. We still have to figure out all of the paperwork on that front. Our plan was to use her investment, possibly a bit of money from my parents, some of our savings and then the first time home buyers program to put together a pretty good sized down payment.
Well, Margie just informed Colin on the phone that her contribution to our down payment was going to be more. Significantly more. So much more that we ran the numbers on some of our potential mortgage payments and they were laughable. I’m talking less than $600 for a monthly mortgage payment!
So obviously, this is a game changer. It’s way more money than we were expecting and it really could shake things up for us. Now, more than ever, do I want all of us to sit down and put this stuff in writing. Often, it’s Colin talking to his mom on the phone and then trying to relay as much of the information as he can back to me once they hang up. So it’s time to get things in writing once we meet in person. Of course, I want Margie’s investment to be protected. And I also want to make sure Colin and I are being fair to ourselves and our future. And I think it would be good to chat and get everything out in the open. It seems like the information we glean from her changes all the time – so it’s about time for us to be direct, sit down and talk like adults doing business.
We’re not quite sure what that sum of money means. Would she be signing the mortgage with us? Because if she does, we don’t qualify for the first time home buyers program. Is that bad? Or are we taking out a second mortgage with her? Colin said she mentioned something about a 0% mortgage we could do. How does this impact our other mortgage? How do we determine her investment pay off once we sell? Can we now start looking at higher priced properties because we have a larger down payment? Or should we continue looking at our current price range and just drive down our monthly payments/pay off the mortgage sooner?
So many questions! Basically, all of this new homeowner stuff has just resulted in a ton of questions. I’m hoping we can get most of them answered soon. I have phone calls planned with my parents for this weekend. I want to share all of this with them and get their opinion. Plus, if they were planning to contribute, as a gift or a loan or an investment, I’d love to know the number going into our meeting with the mortgage professional. Colin is also trying to get a ballpark figure from his mom so we have that information. He’s going to the bank with her on Tuesday but our meeting is on Monday.
And then I’m hoping everything else will get answered soon after that. I’m hoping our mortgage professional can answer a lot of questions at our meeting. And I’m hoping we can book a meeting with Margie’s bank this week and sit down with her to figure out all of the details. It’s scary! Things are really starting to move. The process is happening and the puzzle pieces are starting to fit together. Wish us luck!