Last year was very hectic for me. The reason for this is that in addition to working and running a few races, I was in the market for a home. There are a lot of moving pieces involved when buying a home, especially when you live in the San Francisco Bay Area, which is one of the hottest places to live (and the most expensive) in the country.

I thought I would break down my search into a few posts, starting with the beginning, which was financing. Oh the joys of getting a loan. Now, I have no idea what the right or wrong way to go about this is, but I will talk about the way that I did it, and what seemed to work for me.

First, I pulled my credit report. I have heard, and I am not sure if this is true, that it is better to pull it 6 times in one month than 6 times over the course of a year. So I pulled it, knowing that the lenders would also pull it. Luckily, it was in good shape.

The next thing I wanted was a pre-approval letter. I had no idea what I was getting myself in for, but I did know that a pre-approval letter was better than a pre-qualify. With a pre-approval, the lender gets mostly all of your paperwork and then they use that to figure out how much they will be willing to lend you. This is important for a couple of reasons. Firstly, it is hard to figure out how much you can afford. I spent a lot of time on the internet plugging in numbers, but until the lender actually used my actual hard data to get an amount, I was just guessing (with the help of Google).

The second reason that it's important is that it helps to submit the pre-approval letter with your offer. This can help convince the seller that you are serious about the offer, and it will make them more comfortable that your agreement is not going to fall through due to lack of financing. In the Bay Area, your offer will most likely not get accepted without a pre-approval letter.

To get a pre-approval letter, you have to figure out who you want to try to get a letter and/or a loan from. How do you figure this out? Good question! Once again, I turned to Google (and Zillow) to find out who could give me the best rate. In addition, I asked several people who they had used and how their experience had been. I got a lot of different answers. Zillow named two internet banks and Bank of America as having the best rates. Two of my friends used Quicken (internet bank) and Bank of America.

So, I contacted one internet bank, Bank of America (who happens to be where I have had my accounts since I was a teenager) and Citibank. What happened next was this:

The internet bank asked me to fill out a form with my financial info and send it back to them. The lady was very nice and the operation seemed legitimate. I filled out the form and sent it back and got a pre-approval letter the next day.

Bank of America connected me to Texas. I finally got routed to a local agent, who barely spoke English (sorry!) and tried to talk me into getting a 5/1 arm (adjustable rate) instead of the 30 year fixed that I asked her for. She then asked me to send in about 400 different kinds of paperwork, including all of my Bank of America  bank statements. I sent them all to her and did not hear back from her for three weeks (when I called her, her message said she was on vacation).

Citibank sent me an unprofessional email with no signature or logo that looked like a 12 year old had sent it, asking for 400 different kinds of paperwork. I told them I would feel more comfortable seeing a real person and giving my documents to them and the guy blew me off.

Since the Citibank guy seemed unprofessional, I contacted a third option, a local broker, and I sent him all my 400 different kinds of paperwork. He was very helpful and even helped me run a few different scenarios, depending on my down payment and/or desired purchase price. The guy was easy to reach on the phone and answered any (dumb) questions I had throughout the entire process.

The verdict: The amount I could qualify for was less than I wanted, since they could not count bonuses or overtime unless you could show two full years and proof that it would be ongoing. Bummer. So that meant the amount I thought I could spend was not the actual amount... in addition, I found it very strange that they ask you how much you want to spend. Can't they just crunch all the numbers and then tell you what the absolute max is?

My advice: Try a bunch of different lenders. You have no commitment to them. Once you have all of your 400 documents in pdf form, you may as well send them to as many lenders as you can!

In addition, my realtor told me a few tips. (1) the big banks (BofA etc) take forever to get you an answer, sometimes meaning you lose the house because you can't get financing in time. I know this as well because I work for a big bank and I see some of the frustration over how long thing take. (2) The internet banks will give anybody a pre-approval letter and will often give you the number YOU want, rather than what you can really afford. This causes problems later when it comes to getting the actual loan. Due to this, often times sellers will not accept offers if the letter is from an internet bank.

So, there we have it, my new understanding of financing in a nutshell.

Have you gotten a home loan? What advice or tips do you have for others regarding the situation? 

*Disclaimer: I am not a professional. Any opinions I give are my own and you should do your own research before making any rash decisions. :) 

Don't freak out; this post is NOT about what you think it is.

I decided that I would post from time to time about the joys of being a homeowner. I am sure that many of you have similar stories and I would like to know how things are in your neck of the woods. Are they the same as mine? For instance, do YOU have a nosy/creepy/annoying neighbor? A loud xyz near your house? An animal that poops in your flower bed or eats your homegrown veggies? What woes do you have in your neighborhood?

My first woe is this: Alarm Systems.

When I first moved in, the "curtain twitcher" (my nosy friendly neighbor across the way) came over to introduce herself (at 8:30 p.m. and mind  you, I normally go to bed around 8:30) and to talk about the neighborhood and the goings on and the other people on our block etc. Apparently the guy behind me "might" be a drug dealer, the people at the end never leave their house and the people across the street rented to someone because they moved to Paris for work (but that is the only non-owner occupied home on the block). I learned all of this (and more!) in about 26 minutes, as the clock was slowly ticking toward 9:00.

The other thing she told me, which was interesting but not great, is that since we live on a street that is very easily accessible from the freeway (great for commuting!) sometimes thieves will get off the freeway, kick in your door, steal your TV and get right back on the freeway in a matter of minutes. Now, I am not super attached to my TV, but I am pretty attached to my life, so I decided to get an alarm system.

First of all, getting an alarm system is a pain in the butt. It's worse than getting cable. First, you sign your life away by paying up front for the install/equipment and the first month. Next, some creepy guy comes to your house and tries to suggestive sell you on $9,000 worth of equipment, which by the way, will ONLY cost you an additional $900 in install/equipment fees and another $50 per month on top of the original $40 per month you already agreed to pay. Of course, in his spiel, your area is VERY dangerous and it's IMPERATIVE that ALL windows, doors, peepholes, cracks and crevices be set up with an alarm and preferably a camera and a direct line to the CIA.

So I get the standard, the one that I ALREADY paid for and I kick the creepy guy out. Now, one of the things you also have to get, which creepy guy pretty much brushes over the details of, is a permit with the city or county. This is like a registration with the local police. However, creepy guy did mention that they would take care of it for me. I thought this was great until I got a bill in the mail from them, asking me to reimburse them for taking care of it for me.

Fast forward to three months later when I am riding my bike to work and my phone rings. I ignore it because who the heck is calling me from a 1-800 number at five in the morning; I figure it must be an east coast telemarketer. Turns out it was the alarm company, calling me because the alarm went off for no reason. The police were dispatched and they did not find any signs of a break-in. I was happy to hear that, and I thought that was the end of that. Until I received a bill last week in the mail for $84 for a "false alarm". I thought, "No problem. I have a permit. I will call them and tell them there has been a mistake".

Not so fast, little girl. I looked it up and here are the details.

General False Alarm: With permit = $84, Without permit = $154
Robbery False Alarm: With permit = $156, Without permit = $226
Genuine: With permit = Free(!), Without permit = $70

So, the only way to save money is if your alarm is genuine, aka you get robbed by a burglar. Otherwise, instead of getting robbed by a burglar, you get robbed by the city instead.

Do you have a home security system? What are the rules in your area? If you don't have an alarm, what frustrates you about one of the rules of YOUR neighborhood? 

It's 4:49 a.m. My alarm goes off and I hop off of the couch, where I have been sitting and reading. I wash my breakfast dishes, grab my lunch and use the bathroom one last time and then I put on my helmet and grab my bike and my backpack and walk out the door.

It's about 2 miles from my house to the train station. Luckily, in the morning, it's mostly downhill. I put on my bike light, hike up one leg of my pants and start pedaling. You never know what you are going to see on the streets of Oakland at 5 a.m. There are not too many cars, which is good because that means I can buzz through most of the intersections without slowing down too much. There are sometimes people, but they are mostly like me, heading to work in the dark of the night.

Except for one corner which is near the train station. This corner is a bit different that the others. Women hang around in short skirts; men in trucks slow to a crawl as they pass. It's usually pretty quiet though; I pedal through with no problems.

I reach the train station in about 7 minutes. I constantly try to break the 7 minute time and have only done it once. It all depends on how I hit the traffic lights and how many cars there are that I have to avoid. I get there around 5:07, lock up my bike and hop on the train to work.

In the afternoon, the same journey takes about 12 minutes. From the station, I have to ride uphill and generally its around 4 or 5 pm. I have to stop at every intersection, sometimes for 2 or 3 minutes. There are cars to avoid, as well as people, broken glass, a lone shoe and a condom. It's hot and the traffic is busy and I swerve around old ladies and kids on skateboards. It's a whole different world. I can see everything.

I get home, hop off my bike and push it into my living room, where it lives. I do everything in reverse: walk in the door, backpack off, helmet off, put my lunch in the sink and use the bathroom one more time.

Note: I have been commuting by bike to the train station for a few months now and am really loving the view I am getting of the world this way. Plus a little extra exercise using different muscles never hurts!

How do you get to work? Do you ever walk or ride a bike? What interesting things have you seen while cycling?