First-Timers Tell How They Did It, Offer Tips to Others

We began our home search when we moved to Orange County by exploring different areas.

On one outing we saw a house we couldn't resist. The two-bedroom townhome is on a quiet cul-de-sac in one of our favorite Irvine neighborhoods, close to my husband's office and an excellent elementary school.

Few homes have ever shown as badly as this one. It had been rented for several years, and the paint and carpet were in dismal shape. There were water stains on the cottage cheese ceilings, and the kitchen and bathrooms were covered in dingy wallpaper.

But the home's negatives were cosmetic, and it has large bedrooms, ample storage space, a cathedral ceiling in the living room and a big kitchen. We also like the entryway courtyard and the backyard, which is quite large for Irvine.

The house was listed at $199,000; we offered $190,000 and settled on $192,500.

We had an excellent FICO score, but we had only enough in savings to cover a 3% down payment and closing costs, which would not leave us any cash to remodel before we moved in. Borrowing money from relatives was not an option.

With a little creative financing, my husband, Kirk, who works as a tax attorney and financial planner and has contacts with several mortgage brokers, got us a loan package that would put our monthly housing costs at less than the $1,165 we were paying in rent.

Two weeks before we closed escrow, we welcomed Eric into our family. He was soon on a first-name basis with the Home Depot staff.

"How's our baby?" they would ask when I came in to price items for our fix-up projects.

When escrow closed, we went to work. Friends and family painted; some removed worn-out counter tops and fixtures. My brother replaced every faceplate and switch, and installed new light fixtures and ceiling fans. We bought French doors for the kitchen at a parking lot sale. We paid a professional to remove the acoustic ceilings and to strip the wallpaper, and had new Pergo flooring and carpet installed. We laid tile floor in the bathroom and entryway ourselves.

When we moved into the house three weeks later, we felt as if we had bought a new home. And although the home improvement projects never seem to end, we are happy to have a place of our own.

Here are some tips:

Do:

* Get pre-approved for a mortgage.

* Clean up your credit.

* Research neighborhoods.

* Read real estate articles and talk to knowledgeable friends.

* Look for diamonds in the rough.

* Be flexible in your wish list. We thought we had to have a three-bedroom, but our two-bedroom has plenty of space for us.

Don't:

* Overspend. Because we chose a home less expensive than what we could qualify for, we can afford to eat out once in a while and even plan to buy a new car.

* Be afraid to tackle home improvement projects yourself.

* Think that you can't get a house if you don't have a sizable savings account or a rich uncle.

KIRK and LIZA WALTON

Irvine

Giving 'Freeway Close' a Whole New Meaning

While I was shopping for my condo in early 1999, one of the most helpful tools I used was an Internet site called Mapquest.com (http://www.mapquest.com). There are several similar sites, including one on Yahoo!

When I would see an interesting property listed, I would enter the address on the Mapquest site, and it would provide me with a map showing the listed address and its surrounding area.

I learned a lot about property from this information. For example, I put in the address of a house in West Los Angeles that I thought was priced below market. Sure enough, the Mapquest screen told me that the Santa Monica Freeway ran right behind the house.

DAVID PLOTKIN

Los Angeles

'Next Time I Will Be More Diligent'

I chose a wonderful neighborhood with top-rated schools where my daughter can walk to school, but I forgot to budget for home maintenance.

I also didn't realize how much work it is to maintain a house. I had moved from a small condo where almost everything was handled by the homeowners association. Now, it seems I am constantly planning the next repair or maintenance job.

I have to rely on friends or hire handymen for almost every little household repair, and it's expensive and time-consuming.

Some advice:

* A better home inspection would have solved some of my problems.

Next time I will be more diligent in following the inspector around and asking lots of questions. My inspector missed a few items that were costly to me later.

* Don't use an inspector recommended by your realty agent.

My inspector seemed more concerned about pleasing the agents than satisfying his contract with me.

* Talk to the neighbors before you buy.

Only after I closed escrow did I find out that the homes in my neighborhood were often in need of very expensive re-piping of the main sewer line because of the materials used at the time the homes were built.