The DREAMS Of Buying One's First Home
We often speak about, or observe others, discussing, the so - called, American Dream, which, for most Americans, includes owning a home of one's own! It has been concluded, people feel this way, for a wide variety of reasons, including how it emotionally fulfills individuals, their self - image, family needs, etc. Let's refer to this, as, the DREAMS of buying one's own home, and focus on why this matters, in a significant manner. With that in mind, this article will briefly examine, consider, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.
1. Downpayment: If you hope to buy your first home, you must prepare for it, especially, from a financial perspective. This begins with accumulating the necessary amount of funds, required, for the downpayment. A wise way to do so, is plan, far in advance, and proceed, with the discipline, to put funds away, in a specific reserve fund, in order to prepare accordingly. While there are mortgages which require lower payments, initially, Conventional Mortgages, require 20% down. For example, this means, if one is purchasing a $700, 000 house, he will have to be ready, to put - down, $140,000, and secure a $560,000 mortgage.
2. Reserves: There are several areas, where reserves are needed. One is preparing for Closing Costs, which include, pre - paid taxes, and other escrow items, attorney fees, title and title insurance, etc. In addition, most lending institutions, want proof, of having, at least, enough reserve funds, to pay, for 6 to 9 months, of payments. The dream will only happen, if you wake up, and plan accordingly!
3. Earnings: Mortgage lenders use several formulas, to determine eligibility for qualifying. One of the key ones, is having sufficient earnings, to indicate one can afford, the payments, effectively and properly. Wise prospective homeowners, plan, in advance, and discuss, all the necessities, with a mortgage professional.
4. Attention: Ask for, and request, a copy of your Credit Report, in advance (several months before you go shopping), in order to address and correct any inaccuracies, and enhance the report and your Credit Rating. One can do so, himself, or your mortgage professional, or others, can help you achieve, the best results. Pay keen attention to this, because it will affect, both, whether you qualify, as well as the rate you pay!
5. Motivations: Proceed in an introspective, objective way, and know your motivations, for wanting a home. If you are properly motivated, it helps propel you forward, in a disciplined way!
6. Strengths: When you look for a home, of your own, know your personal strengths, as well as weaknesses! Achieving your goals, priorities, and needs, helps you go further, towards achieving your dreams!
There are many DREAMS of buying one's first home. Will you plan accordingly, and be prepared?
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonLongIslandHouses.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE
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