September 2021 – First-Time Homebuyer Saving Strategy

Charles Schwab’s 2021 Modern Wealth Survey recently polled Americans and asked “What qualifies a person as wealthy?” The majority said someone is wealthy if their net worth is at least $1.9 million.

While to some wealth may just be a number (net worth, annual income, etc.), in reality wealth reflects a mindset. There’s a difference between being broke and being poor. I know people who’ve been temporarily broke, but they were still wealthy because they had a growth mindset.

There are common qualities to wealthy people, but as far as finances are concerned, one of them is home ownership. Research shows that the majority of the rich own at least one home.

I’m not advocating buying a home in order to become rich. If you buy the wrong property it could end up being a money pit! However, buying a home could be a good idea for you if you’re not a disciplined saver. In this case, buying a home and paying off a mortgage becomes a forced saving plan, allowing you to steadily build wealth through equity.

If you’re interested in buying a home, it may be one of the most exhilarating and daunting experiences you can go through. This is especially true if you’re doing it for the first time.

Buying a home is a large investment of time and money. Real estate is a field you may not be familiar with, and it may seem to be controlled by people you don’t know or necessarily trust.

However, there are resources to help you.

To start, it’s important to get clear on your home ownership goal. Do you want a home to live in? Do you want an investment property? Do you want to upgrade a home and resell it?

Even if you already have home-buying experience, I recommend you follow a checklist and make sure you are getting what you want for the price you can afford.

Below are questions to ask when in the early stages of house-hunting.

1. Where do you want the property? What kind of home do you want? Location, size, number of bedrooms and bathrooms, outdoor space, and kitchen size are just a few examples of important qualities. Put a list together of what you’d like to have and what you can’t live without.

2. How are you going to pay for your new home? Before you start the home search, you need to be clear on what you can afford. Contacting a mortgage loan officer for a pre-approval letter is a good first step. However, you should also look at what is realistic. You don’t want to overextend yourself by buying a home that is too expensive to maintain. Just because you qualify for a loan doesn’t necessarily mean it’s a good idea. You also want to shop around and compare what different loan officers provide. You want to get the best rate possible for a long term mortgage.

3. Who will represent you? I encourage everyone to have a realtor represent them in the homebuying process. This can save you a lot of money and stress. However, finding a good realtor can be challenging. Here is a list of questions you can ask to screen for a realtor that would be a good fit for you.

How well do you know the area I’m looking in? How much time do you spend with buyers? How long have you been selling real estate? How do you prefer to communicate? How often will I hear from you? Do you have any references I can contact?

You also want to see if this realtor is a good fit for you personality-wise. For example, if you are more reserved, you might not get along with a realtor who is very pushy. Make sure you are looking at the intangible qualities of good representation, too.

Always remember, if you have a question or comment, feel free to like, post or subscribe to my videos on Facebook or YouTube. You can even reply directly to this email. I always enjoy hearing from you.

If you want to talk one-on-one, I’m also offering a complimentary saving and investing accelerator call.

If you need some guidance with your saving and investing, home-buying, or debt reduction, let’s get on the phone and talk through a strategy to get you where you need to be. These calls are valued at $350, but I’m going to offer you one for free.

Take action now. If you sign up before 11:59 PM on Sunday September 6th, 2021, I’ll give you a complimentary digital copy of my e-book Tax Saving Strategies to help you save on taxes, too.

Have a great weekend, and I’ll talk to you again soon!

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