As a mortgage coach I am always trying to get people to set
goals and work with them to help them reach them. However it’s easy to dream
and set goals but if you never take that all important step of ACTION you will
never reach your dream.
The ACTION part of setting goals is not rocket science if
your goal is home ownership. But you need a plan of action just like any other
plan you set into motion. I think the hardest part is just getting started and
knowing where to start. I hope this post clears it up for you.
Here are a few things you will want to know before you get
started down that road to home ownership.
Learning the Pros and Cons of renting vs. buying… see my
blog post from 2/26/2014 on the subject.
Starting out by getting educated about the process is the
best thing you can do. I take special pride and time in educating my clients. Understanding
the loan products, guidelines and process will reduce your stress level and you
will be better able to choose what is best for you and your family.
Mortgage Coaching is key (it’s all about educating you) and
I happen to offer coaching FREE to all my clients, first time buyers or even experienced
buyers, things have changed when it comes to all the new loan guidelines and it’s
important you know how they will affect getting loan approval.
Everyone is unique and has their own situation, lenders do
make exceptions to the rules if you have a good explanation or reason for them
to do so. Knowing how to ask for those exceptions is key. That’s why you have
me, working for you!
Know how much of a home you can qualify to buy. Why now is
the time to start, if you are self-employed it’s critical you know prior to
completing your tax return how much money you will need to claim to qualify for
a home. Your net income on your SCH-C is
what the lender will use as your income. If you have rental properties you’re
SCH-E will also be calculated into the equation so any losses will go against
any income. If you receive a salary and get W-2’s it’s important to know if your
income is enough to qualify. OR you may need to take on more hours or increase
your income by making some changes to reach your goal. Knowing what you can
afford before you go out shopping for a home is important... you don’t want to
get your heart set on a home you can’t afford. Know your price range and stay
in it, to avoid going over your budget.
If you have credit issues, remember 80% of American’s have
errors on their credit report, checking your credit and running a tri-merge
mortgage credit report will tell you exactly what you need to know and if any
work needs to be done to clear anything up, that can sometimes take a few
months. Get past being embarrassed just about everyone has had issues at some point in their life.
It's doing something about your situation and making changes that is important. YOU can do this!
How much money will you need to pay for your portion of the
closing cost, down payment etc.?
Saving money is hard for all of us. Lenders will require you
to have some money left over after the close of escrow, in most cases 2 to 3
month of reserves is required. Retirement accounts can be used for this
requirement, normally a lender will allow 70% of that type of account to be
used as reserves. But getting all this squared away now will help you prepare
for what is needed.
Knowing about your options, type of loan, terms and down
payment and where you can go for down payment assistance is key. Each state,
county and some cities have down payment assistance programs. You will learn
from me what is available in your area and how you go about applying for this
assistance. In some cases you can get as much as 20% up to a certain purchase
price. This allows you to get a regular conventional loan without mortgage
insurance (MI) and that will save you a lot of money in the long and short of
it, avoiding MI is important if you can. Learning what the best loan is for you
and your family will better prepare you for success in your new home. Failure
is not an option so getting the right loan is critical.
Getting the year off to a great start can also start with a rock solid budget plan. If you don’t currently work within a budget or even have a plan for a budget, I can help you get started and give you the tools you need that will include a savings plan. I know you are probably saying “right we barely get by now how can we save” BUT if you put a planned budget into play and STICK TO IT, I promise you can and will learn to save. If you never start you will find yourself in the same place this time next year.
ACTION is the most important part of your plan, you have to
pick up the phone and call me. If not me then someone else in my industry. Most
loan officers will work with you to reach your goals, not all of them have the
time, patience and know how to get you from DENIAL to getting that all
important status of ELIGIBLE/APPROVED. That status will sound like a song bird
singing to you if you had to take the long road to home ownership, but even
if you are lucky enough to get a fast APPROVAL it’s a welcome status and one
you worked hard to accomplish.
I have a great feeling about 2015, I hope you have great
plans for this year too! I look forward to hearing from you. My goal is to put
as many families into homes as possible, especially those who didn't think they
could do it. That is what makes me happy and warms my heart.
I welcome all inquiries, phone calls and questions. It’s
what I do and love! Take a minute to leave a comment and let me know if this
blog post or any of my blog posts have helped you. I would really appreciate
your input.
Working towards making it an ECO friendly world, have a
wonderful and prosperous 2015
Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926
