TALES from the TRENCHES

‘I Felt at Home From the Moment I Stepped In’

When I decided to purchase a house, I asked around and found a great agent who specializes in first-time buyers, and I asked a lot of questions, including the silly ones.

I didn’t have a large down payment, but my agent presented several first-time buyer financing options. I took a 30-year mortgage offered by the California Housing Finance Agency that allowed for the first-year interest of 5%, the second year 6% and the remaining term would be 7%.

I wanted to live in Pasadena, since I work, go to church, teach and mentor kids there, and on my second house-hunting trip, I found a 1924 Spanish-style house on a corner lot. I felt “at home” from the moment I stepped in. I made an offer, the seller countered and we made a deal.

The following are recommendations I would give to others based on my experience:

* Find an agent you trust. Remember, he or she must fight and negotiate for you.

* Get pre-qualified for a loan. This will allow you to look at houses you could reasonably afford.

* Be there during the house inspection. A lot of great information was passed on to me from the inspector. By following him around I got to see everything firsthand, from the crawl space in the attic to the crawl space underneath the house. I found out what needed immediate attention and what would probably need replacing several years down the line.

* Talk to the sellers to get a feel for the history of the house. If anything, this will help you appreciate the house a little more. I also found out where certain pieces of furniture and appliances worked best in the house.

* Sellers should purchase a home warranty policy. This covers repair/replacement of all built-ins and other items. When something goes kaput, I immediately check my policy to see if it’s covered.

* Walk the neighborhood and talk to all willing neighbors. Ask neighbors how long they have lived in the neighborhood; the longer, the better.

* Check on crime. Call the police department and ask them about crime in the neighborhood.

TINO CHIRINO

Pasadena

‘Size Up the Market and Look and Look’

Location, location, location is the advice you always hear when buying a house. To that my wife and I would like to add: Realtor, Realtor, Realtor and time, time, time.

About 15 months ago, my wife was offered a transfer from Bellflower to her corporate offices in Santa Barbara. I retired and we moved into a rented condo in Carpinteria with a one- year lease. That was the best thing we could have done because it gave us one year to size up the market and look and look and look. The more you look, the more knowledgeable you get.

Our second smart, or lucky, move was to select a Realtor referred to us by a couple we met and whose community values we shared. The Realtor turned out to be a gem, an unassuming woman who has become a friend for life.

She knew her market well and quickly identified “the area for you.” It had next to no listings but finally, after months of looking, she called to say she had “our house.”

She was right. The location is great, the house was in move-in condition with none of the usual “Well, we can remodel that” features, and we bought it. After nine months of house hunting, with the right Realtor, we knew this was the house for us.

BILL and REGGIE HEPP

Carpinteria

‘It’s OK to Be Scared, Terrified, Petrified’

Some suggestions from things I did and didn’t do when I bought my first home last year:

* Get early approval for your loan, then look. You’ll know what you can afford and you’ll be ready for it.

* The right agent is crucial. Get a real estate agent who is knowledgeable, whom you can trust, and who will listen to what you say. Don’t be talked into anything.

* Read the fine print. Make sure you understand all the terms of your loan(s) or you may be in for some big, unexpected, unwelcome surprises. A really good loan officer is essential for this.

* Fix up first. If your new house needs painting, carpet, etc., have it done before you move in.

* Don’t “settle” for something. Get a place you like, that’s within your means, and that you’ll be glad to come home to.

* Talk to people. Ask questions. Listen. Share your feelings.

* It’s OK to be scared, terrified, petrified. This is a big step, especially if you’re alone.

MARSHA GOODMAN

Glendale

‘Want a Home? Then Do Your Homework’

Want a home? Then do your homework!

Every Sunday for a year, I read the Real Estate section of the newspaper, as well as brochures from real estate companies listing available houses. On weekends, I visited open houses in my price range. This showed me what I could expect for the money. It also fine-tuned my needs and wants.

I also lived in the community where I decided to buy. This gave me assurance that the city was moving in a positive direction. It also allowed me to focus on, and eliminate, neighborhoods.

Last, when I found a house, I did a complete search of property records--for both the home I wanted, others in the complex and comparable homes in the neighborhood. This information determined my opening bid and final offer. I paid 11% less than the seller’s asking price.

PATTI PALMER

Tustin

Push for ‘Options and Upgrades’

My husband and I bought our first home, a newly built townhouse, three years ago. We were to pay $5,000 to move in (qualified for a VA loan).

But before we signed the paperwork, we decided to go visit a townhouse community by the same builder. On a Saturday morning, we parked our car and walked the neighborhood, looking at landscaping and exterior maintenance of the houses.

We approached a family washing a car and we asked how they liked their house, did the builder respond quickly to any problems, did they have any regrets?

They said they loved their house and neighborhood, but they had one regret: They wished they had pushed for more options and upgrades, such as carpeting, air-conditioning, window treatment, tile, etc.

With that information, we returned to our sales agent with new confidence and we saved about $10,000. The final deal: one dollar to move in. $5,000 in upgrades: air-conditioning, carpet and tile.

LYNNE and RICK URIBE

Mission Viejo

‘I Absolutely Love My House’

Ajob offer precipitated a relocation to Ventura County from Portland, Ore. My husband refused to accompany me unless I bought him a pool table, and as we looked at rental condos in Simi Valley, we saw a unit for sale that had a perfect living room for a pool table.

The condo had been a rental unit for 20 years. The carpet reeked of urine; cigarette burns marred every counter top. But all we saw was the huge, sunny living room with a fabulous view of the south hills.

“It’s been on the market for four months, but I just found out there are two other offers,” (yeah, right!) said the sly agent. We panicked, as visions of our game room faded, and offered 90% of the asking price, with a stipulation for carpet replacement.

I’ll never forget the look on our loan agent’s face as we walked into her office and said, “We don’t have any money, my husband is an unemployed college student and we just made an offer on a condo. Can you get us a loan?”

But she was a miracle worker and found a special mortgage program that gave us a non-secured loan for our down payment and closing costs. She was also our guardian angel, constantly overseeing our realty agent and escrow officer, and we got our first home.

So what did I learn?

1. Choose your buying agent. Don’t let them choose you! The sign in the window is the selling agent, who will not have your interests in mind.

Interview different agents and choose one you like. Get recommendations from friends and co-workers.

2. Qualify for the mortgage first. If you find your dream home then can’t get the money, you’ll never get over it.

3. Take a close look. Hire your own real estate inspector if you really want the house to be habitable.

4. Heed warning signs. Leaky plumbing, termites, stucco damage, doors held together by glue, cracked window frames, dilapidated fences and 25 other units for sale in the same complex are all signal flares. Pay attention to them.

5. All about escrow. You are allowed to choose your escrow agent. If you have a good buying agent, they will probably know a good escrow officer, and it makes sense to use one who is familiar with your agent. But, if you have a lame agent, he or she will probably know lame officers.

6. On your side. Never be represented by a buying agent who works for the same broker as the selling agent. But if you are, don’t believe anything he or she says.

7. Ask, ask, ask. When buying a condo, interview members of the board as well as the management company and resident owners. Their horror stories may open your eyes.

And even though my property value has already fallen 10%, I absolutely love my house because it is mine. We shoot pool every night and discuss all the ways we can improve our trashy little love nest.

AUDRA A. McKINZIE

Simi Valley

‘Do Not Stop Looking for Your Dream’

These lessons may sound simple, but they held true for us:

* Find a Realtor who is committed to helping you buy your “dream” home. We went through about six in one month, then finally found one who clearly understood our goals and objectives. She was extremely patient and didn’t mind if we pulled up to a house, said, “Yuck, no thanks!” and drove away. Also, do not settle for such responses as, “It’s a steal and will sell fast.” Take your time, there’ll be a lot of these!

* Keep the faith. Do not stop looking until you find your true dream house. We viewed 150 dream homes--including one with about 20 animals living inside, one with renters who may or may not move out on closing and one with an active railroad track right behind the backyard fence.

* Shop around for your lender. Find a mortgage broker or mortgage banker to work with. Believe us, there are a lot of choices and options. Don’t feel intimidated or rushed. Ask a lot of questions.

* View your dream home during the day and night, weeknights and weekends. You’d be surprised how the parking situation changes after 6 p.m. Drive around the entire neighborhood. Talk to your potential neighbors.

JANICE and BILL MARTIN

Orange

‘Breaking All My Rules’ to Buy

Ijust bought my first house, breaking numerous home buying “rules” in the process, but I had to have a house. After all I had just rescued a dog, an Anatolian Shepherd named Bear, and he needed a backyard.

I had the name of a mortgage broker, but I didn’t call right away. A week after I started house hunting I found the one I wanted--a magnificently restored gingerbread Craftsman. So much for Rule No. 1 (“Get pre-approved for a loan before you start looking”).

The moment I saw the house, I was hopelessly smitten. Scratch Rule No. 2 (“Consider buying a first house with plans to move up later”), Rule No. 3 (“Take your time, compare houses”) and Rule No. 4 (“Don’t fall in love with one house”).

The most I could scrape together for a down payment was 10%, breaking Rule No. 5 (“Put more than 10% down if you have bad credit”). Since I had a 6-year-old bankruptcy, it was touch and go, but I got the loan.

We spent almost two weeks dickering with the seller’s agents and had reached a stalemate. I told my agent I wanted to take some action. Goodbye Rule No. 6 (“Don’t contact the seller directly”).

I poured out my heart in a letter to her; my agent said it was a risky move, but a few days later he called: “Well, you just bought yourself a house.” The letter had done the trick.

In spite of breaking all my rules, I moved in six weeks after I started looking. Bear now has a big backyard, and while my heart still skips a beat every time I pay the mortgage, that little dream house is finally our home.

BETTINA MOSS

Los Angeles

‘What Ownership Is Worth to You’

When I discovered that the Department of Veterans Affairs advertised its foreclosures every Friday in The Times Classifieds, I looked every week.

I had vowed never to buy a one-bedroom condo, but upon seeing one listed for nothing down in my town, I submitted a bid, based on rental value, at 17% below minimum. Of course the VA didn’t process my bid, but a few weeks later the condo listed again, this time at 15% below the original minimum and 1/4 below the original interest rate. My new bid for $100 over minimum was accepted. I have been the proud owner and resident of that beach condo for more than a year.

My advice: Continue to fuel your dream of homeownership, be open to unconventional possibilities and know what homeownership is worth to you.

CYNTHIA B. WILSON

Hermosa Beach