Our first home, our first mortgage

This morning I was listening to a 'Podcast' from NPR's "Planet Money" and the discussion was about mortgages and how nobody these days anticipates ever actually paying off a mortgage. Apparently, when one takes out a mortgage, the assumption is that the homeowners will either a) move, or b) refinance long before the mortgage ever matures and is paid off.

This got me thinking wistfully about our first home in Galena, Illinois. We purchased it in early 1977 shortly after we were married. When we started to contemplate moving out of our apartment and becoming 'homeowners', I had no idea what to do or how to even think about doing it. I didn't really even understand what a mortgage was.

We were working in Dubuque, Iowa and decided to look for a house in nearby Galena, Illinois.
I stopped in to the First National Bank of Galena and told the receptionist that I wanted to talk to someone about buying a house. She took me to the back of the bank and introduced me to "Mr. Beuning". Mr. Beuning was in his late 60's with a full compliment of white hair, was probably six foot-something and looked to weigh in at maybe 140 pounds. He was fastidioulsy dressed in very 'banker-ly' three piece suit, white shirt & tie. Turns out Mr. Buening was the bank's President.

I told him that we had just gotten married and thought maybe we wanted to buy a house, but didn't know much about the process or whether we should even be thinking such thoughts. He asked a few general questions and then just said "why don't you go find a house you think you want to buy and then come back and see me."

So we did. We found the house at 732 Dewey Avenue in Galena (pictured above) and I went back to see Mr. Buening. He asked if we'd made an offer on the house and I told him that we had. He said, "Well, why don't we meet over there next Tuesday. I'd like to go through the place with you."

We met him as scheduled on Tuesday and he remarked that he remembered the house from when he was a boy and it had been well preserved and nicely updated. After a 'walk thru' and some small talk with my wife and me and the Realtor, Mr. Buening said goodbye and then offered, "Our loan committee meets tomorrow morning. Call me in the afternoon, I should have an answer for you."

As my wife drove off in one direction and the Realtor drove off in another, I stood there contemplating what Mr. Buening had just said...that their "loan committee" was going to give us an answer the very next day. All of a sudden, it occurred to me that Mr. Buening had precious little information about us. I had not so much as filled out a scrap of paper with my social security number on it. He'd have almost nothing to give to the loan committee so that they could make their decision.

I went back to the bank and Mr. Buening seemed surprised to see me. I said, "Mr. Buening, I just thought you might need to know more about us. You've never asked for our social security numbers, how much money we make, any credit references--NOTHING! I just thought I could give you some information that might help the committee make its decision."
Mr. Buening replied, "No, Kim. I knew that if you weren't serious about buying a house, you wouldn't have come to see me in the first place. You just call tomorrow afternoon. I think we'll have some good news for you."

Well, the loan committee (which I now suspect was comprised of Mr. Buening and his coffee cup) approved us and we closed on the loan a few weeks later. We were the proud owners of our first home and our first mortgage payment book, with its payments of $194.42 a month.

That was a sweet little house and had many original and unique features. It was also a sweet time in our lives. Things were simple and time moved more slowly. Now things are more complicated and I move more slowly.

But I am thankful for my first experience with high finance, securing a mortgage and becoming homeowners. It was like a chapter out of a Lake Woebegon novel. All such transactions should be so simple, so personal and filled with such common sense.