business talk

Maryland Real Estate Investor

Rhonda Mack

Home Ownership by Rhonda Mack

Most people dream of the all-American dream...home ownership. The dream can be fulfilled by all who desire it; it just requires perfect planning and with planning comes sacrifices. As you pursue your dream of home ownership, I recommend paying off all of your bills and not borrowing the money to do it. First,focus on paying off your small bills and keep them paid. Make a habit of paying everything in cash. Destroy any excess credit cards that you know will get you in trouble. Once your small bills are paid, focus on your larger bills, beginning with the smallest. Work out payments where you can pay it off within two years. I’ve always made a practice of using my income tax refund to pay off bills, so if you have this luxury, use it wisely. If you own a car and it will be paid off within a couple of years, delay your home purchase. The less debt you have, the better. If you have a student loan and the balance is too high to pay off within a reasonable amount of time, then there are other options available to you. Consult a financial advisor and/or real estate agent.

While you’re in the process of paying off your bills, it’s a good idea to speak to an agent before you are ready. Select one at random. They can inform and advise you of what’s required to purchase a home, the closing costs, what value home you can afford, and what you need to do in order to reduce any debt. There is also a booklet they should be able to provide to you with closing cost information, etc. This information can also be found in your local library or the internet. Many people are able to afford a house note but are unable to afford the closing costs. There are programs available to assist the first time home buyer. The programs can also be obtained from an agent, your local newspaper and other home purchasing sources. Do your homework.

After you have paid off your bills now is the time to select a real estate agent. Referrals are good but it’s also good to select your own. Please use your better judgment. If the information that you are provided doesn’t sound right or make sense, contact another agent to see if their information agrees. You basically want to obtain the warm fuzzies from this person. It’s just like buying shoes or an outfit, you want the perfect fit. Please keep in mind that the home search process requires a lot of patience, so be patient if it takes longer than anticipated. Your goal might be to shoot for a single family home but you later realize it’s not affordable. Please do not get discouraged, try looking in other areas or take a look at condos. Most are very modern these days and even come with lofts. You may also want to look into new construction. I opted for new construction with my current home since the homes were too expensive in the area of my choice. I was able to get all of the features I wanted, and I paid half the price.

I recommend obtaining a fixed rate for your mortgage. If you need to go with a variable rate or an adjustable rate mortgage (ARM) then in my opinion, you can not afford the home. Please do not allow anyone to talk you into it. The variable rate and ARM is for the more experienced home buyer.
If my plan or strategy doesn’t seem workable for you, then establish what can work based upon my suggestions. If your bills are just in complete shambles, then don’t hesitate to seek financial advice to get you back on track. Good luck to you as you pursue the all-American dream. Remember to plan by making sacrifices, paying off bills, having patience and selecting an agent that’s the perfect fit. Happy house hunting!