Utilities & Georgia Car Stuff

This morning proved to be the best four hours of annual leave used ever, to get all of this stuff out of the way in one fell swoop. Since I got possession of the home today, I definitely wanted to have all the utilities transferred over today to avoid any break in service. And it was about time I became an official Georgian.

Georgia Driver's License

The first thing to do was get my Georgia driver's license squared away since every other task today--specifically the car title registration--would be dependent on having a valid DL. There are five offices of the Georgia Department of Driver Services in the metro Atlanta area: Decatur-South DeKalb Mall, North Cobb-Canton Rd (Marietta), Lithonia, Lawrenceville, and Locust Grove.

I chose to visit the Decatur-South DeKalb Mall branch, which is literally inside the mall at 2801 Candler Road, Decatur, GA 30034. The office is open 7:30am-6:30pm M-F and 7:30am-12pm Saturdays. You can even make an appointment for certain types of transactions, like an out-of-state transfer (like me), but only between 9am and 2pm. Luckily, the lines aren't very long on an early Thursday morning.

The process is simple. You get in line for the receptionist who'll make sure you have all the documentation and forms you need. You then get a number and wait. To transfer my out-of-state DL for a Georgia DL, I needed my:

• Valid out-of-state DL
• Proof of Georgia residency (i.e., my settlement statement)
• Proof of identity (i.e., passport)
• Proof of U.S. citizenship (i.e., passport)
• SSN
• $20 in cash, credit, or check (for a 5-year DL; $35 for a 10-year DL).

After a quick eye exam, the mandatory bad photo shoot, and 45 minutes total, I had my Georgia DL in hand. I had also signed on as an organ donor and registered to vote.

Georgia Vehicle Registration (DeKalb County)

I then moved onto what I've been dreading...registering my car with DeKalb County. Georgia state laws and requirements surrounding car tags, titles, property (i.e., ad valorem) tax, emissions testing, etc. are REALLY confusing.

The Georgia Department of Revenue, Motor Vehicle Division has all the general info, but the county tax commissioner's office is where you need to go register and so get more detailed info.

The DeKalb County Tax Commissioner is located at 4380 Memorial Drive, Decatur, Georgia 30032, and has a nice one-page checklist for new residents describing all the documentation they need. I've poured over this list for days and eventually just stuck all my documentation in a big sack because I didn't want to have to go back.

Good decision too. The lady at the counter must've liked me because I got it right on my first try. Sounds pretty rare. All my paperwork was in order, including:

• Proof of ownership of the vehicle (the list is confusing as all hell, so thank goodness I brought EVERYTHING. Since I bought my car new and am still paying off the loan, the title is held by the lien holder. So my proof was my original purchase agreement with the car dealership with the complete address of the dealership and lien holder [i.e., bank]), plus my current car registration)
• Proof of residency/non-residency (requires two forms of documentation from the list. I used my settlement statement and valid, current out-of-state registration)
• Valid GA DL
• Proof of GA liability insurance less than 30 days old
• Current vehicle mileage
• No emissions testing needed b/c my car is less than 3 years old
• Fees (debit, credit + $4 fee, in-state check)

The fees will depend on your registration period. In DeKalb County, registrations expire on your birthday and must be renewed during the 30-day period preceding and ending on your birthday. My birthday's in early December, so maybe there's a longer period for a first-time registration (or maybe the lady at the counter just liked me), but I lucked out and didn't have to pay a boatload of fees.

I was feeling so positive that I went ahead and got a special plate. The standard Georgia plate is pretty boring with a clipart peach. All special plates have manufacturing fees and possibly annual tag fees in addition to the standard annual $20 fee. Part of the fees go to the associated fund, charity, etc.

I chose the wildflower plate with a purple coneflower because it's really cute, and there's only a one-time $25 manufacturing fee, $24 of which goes to the Roadside Enhancement and

Beautification Fund. Best value. :)

Utilities

• Power - Georgia Power pretty much covers all of this area, so I just called their residential customer service to set up (1-800-660-5890). Simple. Well, should be simple, except that the rep I spoke with couldn't find my house in the system for some reason. Not helpful, so I called All Connect to get it done (1-866-377-7853), no problem. All Connects can set up all utilities for you with one call. Nice service.
• Gas - There are a number of natural gas companies in town, but I've decided to go with Gas South. Signed up online and got a $40 credit (if sign up by Nov. 5).
• Water - I had to physically go to the DeKalb County Finance, Treasury and Accounting Services at 1300 Commerce Drive, Decatur, GA 30030 to set this one up. Not bad. Just needed my settlement statement, picture ID, application form, and certificate of compliance. In an effort to conserve water, any properties in DeKalb County built prior to 1993 must now be retrofit with low-flow plumbing fixtures. My home inspector was able to sign off on this certificate for me so I could turn my water on!

I am a homeowner!!

The closing process was pleasantly painless and actually enjoyable! I had to sign many fluttering papers, but not so many for my signature to become illegible. In fact, the hard part had already been done, and all the discussions had. This was just a formality.

My Stepwise Closing

1. I went to the law office of my closing agent.
2. My agent and me, the sellers and their listing agent, and the closing agent were present.
3. First, the closing agent went over my column of the HUD 1 settlement statement to make sure I understood all the costs, particularly the itemized portions that were covered by the seller-paid closing costs.
4. Then I signed loads and loads of papers.
5. After I was finished with my bit, the closing agent repeated steps 3 and 4 with the sellers, although they had fewer pages to sign. However, my seller's son was signing as a proxy, so he had to write out in cursive, "Seller's Name by Proxy's Name as AIF," twice on each form since there were two sellers. Ick.
6. Once all forms were understood, explained, and signed, the closing agent collected my and the seller's driver's licenses, and I handed over my certified check for my down payment (made out to me).
7. After the closing agent made copies and final approvals with the lender, she was ready to cut our checks and call it final! My lender had overestimated my down payment, so I actually got the overage back as a check. And the sellers got their check!
8. We shook hands, and I got the keys, title, and home warranty.
9. In a happy ending, I would've gone straight to the house and celebrate. But in my contract, I gave the sellers two extra days to vacate and clean, so I won't have possession of the house for another two days. That's fine. More time to ponder paint colors!

The forms required during signing will of course vary depending on the contract and agreement between the buyers and sellers, the companies involved, and state/local laws and traditions. But for anyone wondering what they heck they may actually be signing, here's what I put pen on paper for today. No explanations provided. Don't ask! It all made sense during the signing!

Buyer Forms Required by the Lender

• Acknowledgment of receipt of settlement statement
• Truth-in-lending disclosure
• Uniform residential loan application
• Note on loan
• Security deed
• Foreclosure closing disclosure
• Request for taxpayer ID number and certification (W-9)
• Compliance agreement
• Statement of occupancy
• Preferred payment plan
• Request for transcript of tax return
• Correction agreement limited power of attorney
• Property insurance requirements
• Notice of assignment. Sale or transfer of servicing rights
• Affiliated business arrangement disclosure
• Appraisal acknowledgement
• Customer contact disclosure
• General loan acknowledgment
• Initial escrow account disclosure statement

Buyer Forms Required by the Closing Agent

• Compliance agreement
• Limited power of attorney correction agreement
• Disclaimer and notice to purchaser and seller
• Survey waiver and acknowledgment with hold harmless
• Wood infestation report acknowledgment and waiver
• Hold harmless agreement for termite letter

I didn't even mind it all that much. Today was a fine day for a signing--high 70s, blue skies, and sunny.

Closing Looms. HUD 1

My closing is set and ready to go for tomorrow morning!! In about 15 hours, I will be a home owner!!!

My lender sent me my HUD 1 settlement statement document last week. I really should have examined this thing much more closely, but I kind of prefer the blind ignorance strategy. OK, you got me. That's not really a strategy.

According to about.com, the HUD-1 is a form used by the settlement agent (also called the closing agent) to itemize all charges imposed upon a borrower and seller for a real estate transaction. It gives each party a complete list of their incoming and outgoing funds.

In case you want to see what the form looks like, here it is on the website of the U.S. Department of Housing and Urban Development. Both my agent and lender referred to it a few times and waved it away, saying that I'll see it later. True, I couldn't see the the final document until after:

1. I'd gotten all my paperwork in (bank statements, evidence of gift transfers) to get my stuff into underwriting (the lender's company making sure I'm legit), and
2. After the lawyer took the hack at it. I'm still not sure what the lawyer did, but this HUD 1 thing came out of it,
3. which would all take about one week, at the quickest.

BUT I still would've liked to have seen what the form looked like early on, even if blank, just to get that question mark out of the air. I didn't even know to ask for it, but since I know about it now, here it is. Take a gander for your own amusement.

Re-re-inspection

My closing date has been pushed off by one week. This is supposedly the normal course of business when it comes to real estate. Luckily, it doesn't matter much for me because I built in cushion room between closing and the end of the my apartment lease.

So, what's with the delay? Electricity. That's why.

During my 21-day due diligence period, I had an inspection done as early as possible. That way, if we found any funky things, I could use those as bargaining chips, e.g., for a lower price, for repairs, depending on how severe the funkiness and how wack the seller (and buyer, I suppose).

Luckily, my inspection came up with relatively minor electrical and plumbing issues, almost all of which the sellers agreed to repair. Unfortunately, during yesterday's re-inspection, we found that something got lost in translation between paper and electrician hands, so we'll have to give it a bit more time to get everything in place.

So after the electrician comes back to complete everything, we'll have a re-re-inspection and hopefully the go-ahead to close. I don't want any loose ends before closing, you know?

The Inspection
Try to be present during the inspection for as long as possible, and you will gain a treasure trove of knowledge from the inspector. All about the electrical, the plumbing, the roof, the crawlspace... If you're thinking of remodeling down the road, he can give you recommendations of how that would go too. Ask anything and everything!

It didn't take me long to find my inspector. I just took the guy my agent recommended, which can be risky, but he did come well recommended by a coworker as well. I was lucky. Healthy Home Inspections of Atlanta is quite good. David is thorough and very responsive.

As a first-time homebuyer and first-time old-home dweller, I was alarmed by the fact that my electrical wasn't grounded. Would I get electrocuted blowdrying my hair?? How will I mow the lawn with my electric lawnmower without a good socket?? Will my house shut down if I do both at the same time (I gots skillz)??? David was able to patiently help me understand that no, none of this would happen. Thank goodness.

My actual inspection report is electronic and very thorough with illustrative photos of the actual parts of the house with problem areas, arrows and all. David didn't use checkboxes, but instead, wrote out narrative about each component, with the addition of nice FYIs, not just the code violations, etc.

Of course, I have nothing to compare this to, but I haven't been unhappy with it. Plus, even though David had to re-inspect twice, he didn't charge me twice. Now, that's customer service.

First-time Homebuyer Credit(s)

I shall faithfully do my duty as a citizen of this world to stimulate the economy.

Enter: House.

I'd be growing Pinocchio's nose if I said that this first-time homebuyer credit isn't motivating me to sign on those dotted lines and hand over my lots and lots of hard-earned cash this Wednesday.

No more shopping sprees (i.e., uninhibited window shopping) or vacations to exotic locales (i.e., collecting travel magazines) to tempt my pocketbook. Yes, it's the 30's with a bang!

So how do I get this nice bit of cash incentive? The IRS Ten Facts about the First-Time Homebuyer Credit is a great place to start understanding the federal credit. I don't have a CPA, so I've been doing some reading, and I don't think this is as complicated and scary as I had originally thought (given that the IRS is involved). Some states, Georgia included, also are offering a first-time homebuyer credit, which is a nice bonus.

Federal Credit
Practically speaking, I only need to submit 1 form (or 2, depending on when I want to get the money) to get the federal credit. Form 5405: First-Time Homebuyer Credit is the primary form, and if I don't want to wait to file with my 2009 return (so I can get the money a lot sooner), I can submit Form 1040X: Amended U.S. Individual Income Tax Return to amend my 2008 return. The 1040X will take 8-12 weeks to process, but I'm hoping it'll be quicker since this is not a busy IRS season, and I've heard that the IRS is watching out for 1040X forms filed explicitly for the first-time homebuyer credit so as to push out the stimulus money. Yes, ARRA, I'm listening!

Georgia State Credit
On May 11, 2009, Georgia state governor Sonny Perdue signed House Bill 261 for Georgia's "eligible single-family residence tax credit," which looks a whole lot like the federal one, but with a few more limitations. This Georgia Department of Revenue Informational Bulletin on the tax credit is helpful to understand the bill and what the process should be, and this FAQ handout by the Georgia Association of Realtors about both the federal and state tax credits is simply awesome. My observations that follow are by no means comprehensive of the provisions in this bill.

• The Georgia first-time homebuyer credit is valid only on homes purchased during the six-month period starting from the month following the effective date of the legislation, i.e., June 1, 2009 - November 30, 2009.
• The purchased home must have been on sale prior to May 11, 2009 and still be on sale; in default on or before March 1, 2009; or already in foreclosure.
• The credit is equal to 1.2% of the purchase price, or $1,800 (whichever is less).
• Unlike the federal credit which can be claimed in one lump sum, the Georgia state credit is claimed in 1/3 annual installments starting with the 2009 return.

Practically speaking again, I need to fill out the eligible single-family residence tax credit portion of Form IND-CR and file that with my 2009 Form 500. None of these Georgia state tax forms is yet available, but should be soon. I also must include a bona fide listing agreement from the real estate agent that shows eligibility of the residence and a copy of my closing agreement.

Well now, that wasn't too bad. Nothing like a good blog to make me do my homework!