In the previous article I wondered if anyone could trust advertising agencies, let alone a realtor, a broker, a moneylender, or anyone else involved with the real estate business. So, I decided to try out the real estate scene, since I had accrued some money for a down payment. Amazingly, I found a town home within the past seven days that seems to be a good investment. But, I've also discovered that buying a home isn't a joyous or rational experience when an egoistic broker is involved.

First, I called a mortgage lender out of the blue to learn what price market I could enter. This market wasn't based upon my income (in fact it wasn't a consideration at the time), but it was based upon how much I wanted to pay per month and my down payment (which was figured at 10%). I wanted this payment to include everything except utilities. That mortgage lender wasn't slack - she included house payment (principal and interest), real estate taxes (she overestimated), and mortgage insurance (I'll explain in a bit).

Frankly, I was surprised that I was able to find a house in the price range she suggested, as I figured I needed a 20% down payment. That's not the case. In fact, a person can still obtain a home with nothing down, although the interest rates probably will be higher than if that person had a down payment.

That twenty percent mark is important, however, as a buyer needs to carry mortgage insurance to protect the lender until I have twenty percent of the equity paid off. And, it's up to me to notify the mortgage company when I do achieve a 20/80 balance in my mortgage. What was interesting, and it was the first sign that all wasn't rosy in real estate land, was that this mortgage lender wanted to tie me into a T.A.M.I. At first, this "Tax Advantage Mortgage Insurance" program sounded great, because I could tie my mortgage insurance into my interest rate and write it all off on my taxes. In my case, that interest rate was increased by .25 percent with the addition of the mortgage insurance.

That small jump in my interest rate didn't seem like much of a hike, and - as a self-employed person - I needed all the tax write offs I could find. But, after reading about the T.A.M.I., I realized that I would be paying this mortgage insurance through the life of the loan because it would forever be tied to my interest rate. Considering I was getting a 30-year fixed mortgage, I would be paying on that mortgage insurance for a long time. That .25 percent interest hike could really add up - much more so than if I doubled my house payments and was able to drop the mortgage insurance within three years. So, the T.A.M.I. (pronounced, "Tammy") was out.

And, since I did have ten percent down, it was better for me if I went for a conventional loan rather than an FHA loan. The interest rate, once again, would be lower in the first instance. And, a lower interest rate is what it's all about. I have plenty of other items to deduct for my taxes, trust me.

So, when I knew what size house I could afford, I talked with a real estate agent who was connected with this mortgage lender. I'm not sure what that means when I say, "connected"; however, after this week's experiences I have come to believe that some mortgage lenders remain deep in bed with real estate brokers, and no one's snoring.

I really like my real estate agent, as she's entertaining. She does tanning beds, has false nails, uses lip liner, and she streaks her hair and wears false eyelashes. On our first outing, she wore leather-trimmed pants and a white fitted blouse, no jacket (it was warm that day). Despite these accoutrements, she has a charm that comes with real na?vet?. The reason I say this is because anyone with any smarts wouldn't work for her broker.

I met her broker quite by accident. Or, maybe not. Maybe they intended to pull him in to convince me to buy this town home, sort of like a good-guy/bad-guy routine. Unfortunately, I was already sold. All I wanted to know was whether the town home was sitting on a flood plain. What I got in response was three hours of unmitigated ego, covered thinly by a pinstripe suit that this broker called his "panty dropper."

It came as a shock to the realtor and to her broker when I refused to have the broker present the following day as I signed the contract for the first bid. Although my father feels this broker may have learned a lesson about how to treat a client from my refusal to meet with him, I sincerely doubt it. After all, he's still going to get his commission if I close on this town house. While it would have been nice if he treated me like a princess instead of snapping his own suspenders, I'm not going to walk away from a negotiation simply because I can't stand the broker.

While I still don't agree with the vitriol that the writers from Advertising Age produced about realtors (see previous article), I will say that I'm leaning toward little to no respect for the real estate industry. Yes, I have limited experience, but how many times does the average American come into contact with a real estate agent and her broker anyway? If you ask me, one sour experience can color a homebuyer's outlook for a lifetime. While buying a home could have been an exciting and empowering experience for me, this broker added a layer of sleaze to my deal.

But, that's not all. There's more to come?(Will my inspector discover mold even when the broker said that "stuff" that looked like mold was "dirt"?).

Until Next Week,
Linda Goin