Feel like you’ll never save up enough money to buy a home? Think your credit is too bad to fix? Worried you won’t find a home in this crazy market?
Well, I’m not saying your worries are unfounded! What I have seen is that people who have a will find a way – even if it takes a long time. Somehow they hit their pain point and find a way to make a change. What am I talking about?
Have you ever heard of the pain pleasure principle? It comes from Sigmund Freud and suggests that people make choices to avoid or decrease pain, or make choices that create or increase pleasure.
So, here’s my 1st question to you:
What’s your PAIN point?
How painful is it for you to rent?
How much money are you losing every year? Take out your calculator and multiply your monthly rent by 12. Then take that amount and multiply by 3 years, 5 years, 8 years! That’s how much money you’re losing with absolutely nothing to show for it. No home, no equity, no property value to your name.
What other inconveniences do you put up with? Noisy neighbors? Landlord who doesn’t fix things? Not allowed to get a dog for your family? Nowhere to plant a garden? No garage to park your car in? Not able to personalize your home?
So, here’s my 2nd question to you:
What’s your PLEASURE point?
How excited are you to own your own home?
Do you want to start paying off your own home, instead of someone else’s? Do you want to increase your personal wealth through homeownership? Do you understand that creating equity now will allow you to trade up down the road? Do you dream of a place that’s all your own? A place you can paint and decorate, a place you can have friends and family over, and a place where you don’t have to worry about lease renewal or rent increases?
If you’ve hit your pain pleasure point with renting, then now is the time to start working toward home ownership. It could take you a few months or a year, but you can get there! Now is the time to prepare. Here are three significant steps to get you started:
- Create Outstanding Credit! Your credit score plays a huge role in what type of loan you can get, how much your interest rate is, and, actually, if you can even qualify for a loan. You can get your free credit report at annualcreditreport.com to find out where you stand. You can also start working with a lender who can do a “soft pull” of your credit and give you tips on what to do. Credit repair can take some time, but it can be done.
- Reduce Your Debt! Your debt to income ratio is also looked at when you apply for a home mortgage. This will affect what type of loan you can get and how much you can qualify for. Start paying down credit cards and student loans. Don’t take on any new debt, like buying a car or furniture on credit, or opening new credit cards. Make regular payments to not only reduce your debt, but also help increase your credit score.
- Save Like Crazy! Closing costs for purchasing a home are usually higher than what people expect. Put aside money every week even if it’s a small amount. If you have to, skip coffee on the road and eating out. Cut back on spending and extra expenses. The more you can stash away, the better!
So, if renting is painful enough for you to do something about it, let’s talk! If you’re dreaming of your own home, let’s talk! You can start now on your path to home ownership.