Steps to Home Buying
At this point you've had a couple of weeks to settle in to the new year. Unless you're a sceptic that refuses to make these resolutions, you have some things that you have resolved to change about yourself and/or you circumstances in 2018. After a couple of weeks in your new routine you may have decided that you're going to give it up (this is 90% of people).
Well, I thought it'd be a good idea to talk about what a resolution is and give you some encouragement to keep at it. Remember, 90% fail so 10% must make it work!
Let's break it down.
Wikipedia says a resolution is:
The act or process of resolving: such as
a : the act of analyzing a complex notion into simpler ones
b : the act of answering : solving
c : the act of determining
The all time favorite resolution, the NEW YEAR’S RESOLUTION is no different. It is an act of determination, solving problems and resolving complex notions into simpler ideas!
That's easy enough, right?
Deep inside we all get excited and filled with hope for what the new year will bring. It’s a renewing in your spirit to decide that from here, this very moment at 12am things will change and I will no longer be satisfied with the pumpkin but will become the princess/prince.
All though a great thought process the issue would be, how to turn the pumpkin idea into the princess/prince lifestyle for good.
So let's take a look at what the famous princess did to make those changes stick.
Much like the fairy tale, Cinderella had to get real with herself and come to the realization that her worth was far greater than what she had settle for.
Then she had to get honest with everyone else. She had a taste of what her life should have been like but just as quick as it came it left. How was she to get back to where she knew she was supposed to be.
The new year is a great time to take an honest look at yourself. What have you settled for that you shouldn't have and what you want to do to change that?
When you look at your life do you see the pumpkin or the Prince?
In terms of real estate, we have done the math and conquered the big obstacles (those evil step sisters) and objections to becoming a homeowner. These things will weigh you down and discourage you. They will knock you off track if you let them.
The good news is even at minimum wage you, yes you, can have your own piece of the pie. Is that hope for 2018 or what?
I talked with Brian Dorsey of CMG Financial and these are some things he recommended to do this year to get you on the path of homeownership in 2018. Brian doesn't believe in the pumpkin lifestyle. He believes you can and with help, you will accomplish all you set out to do. He believes this because he's seen and helped many homeowners do just that!
So let's get to it!
#1. Write down your entire budget.
This should include everything from your rent to your Netflix subscription.
#2. Do not base the size of your house payment solely on what you can get approved for.
You want to make sure that your payment fits inline with that budget we just talked about. You don't want to do all the work to get in the palace and not be able to live like the princess/prince.
#3. Learn about property tax rates in neighborhoods you are interested in purchasing. This can affect your monthly payment substantially.
Taxes across Texas range a great deal so make sure your ideal neighborhood fits in your budget.
#4. Pull your mortgage credit report (much different than a consumer credit report like credit karma). Make sure your report is accurate.
This ties into #6. Make sure you talk with your mortgage banker before you go looking for your palace.
#5. Evaluate your outstanding debts to see if there are items you may pay off to lower your debt to income ratio.
This is something that the majority of people don't think about on a daily basis. Keeping your income to debt ratio in check is vital when buying a home. Keep as much cash flow as free as possible.
#6. Consult with a mortgage banker before making a decision. There are possible actions you can take to receive a better interest rate or terms.
This may sound like it's not a big deal but in reality if you can pay off your home in 15 years vs 30 years or get an interest rate that allows more of that free cash flow, that will make a world of difference in your lifestyle.
CMG is a great resource for counselling on all of these things. They have worked with clients over a year to get them to an optimal buying position.
You can find out more about CMG Financial and Brian Dorsey right here.
So what do you say we take 2018 to new heights. Set new standards and don't settle for the pumpkin this year. Let's work together to make 2018 a year that the slipper fit just right and you took your rightful place in your own palace.
Lesley Estes Perez