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Homeowning: Not As Hard As You Think
By Malik Carter

Any financial advisor worth his weight in paper clips will tell you that the first step to building wealth is to own a home.   It makes no sense to pay rent A/K/A someone else's mortgage before your own.   When I lived in an apartment my rent was $940 per month. Simple math will tell you that paying rent of $940 dollars per month for 12 months = $11,280 dollars per year into someone else's pocket.   Most people would like to own a home, but the same two things hinder them, lack of knowledge, and most of all fear.   I'm here to testify that owning a home is not as hard as you think.  


People constantly tell me that they can't buy a home because their credit scores are too low, or their bank account needs to be bigger for the down payment.   In some cases these things are true, but in others situations neither is correct.    There are all types of loan programs and grants that fit the needs of first time homebuyers especially.  

The most popular program today is 100% financing with credit scores as low as 500 .   How many people really have a credit score below 500?   This mean that most Americans can purchase a home with only the money for closing cost.  Closing costs' can be paid a few different ways.   For instance, The City of Philadelphia has multiple closing cost assistance programs available.   There are countless local non-profit organizations that offer grants and counseling for first time homebuyers.   The way that the agreement of sale is written can help to cover closing cost.   The 'most difficult' way to cover closing cost is to save up and pay it out of pocket.  

Before you spend money ask yourself a few questions, "Do I have to go to the club this week?, Can I cook at home rather that eat out?, How many new pairs of shoes and outfits do I need right this minute?, What am I willing to sacrifice to purchase a home and start to build wealth?"   Combining 100% financing and closing cost assistance almost no money is needed.   In some cases, Homebuyers can even get money back at the table.


Some of the most common fears are that payments are going to be too high.   To ease those concerns the most recent example is of a homebuyer that only paid $2000 out of pocket expense and bought a house for $95,000 and has payments of only $650 dollars per month.   You can always buy a multi-unit building and rent to other people.   Another homebuyer of mine bought a duplex in Germantown with 100% percent financing that already had a tenant that covered $650 dollars of the $800 dollar mortgage.   I'm sure that paying only $150 dollars per month is help when it comes to being able to save, invest, or create a less stressful financial situation.  


There are many more benefits to owning a home, such as tax write offs, equity usage, retirement planning, and estates, etc.   These things will be covered in later updates.   I encourage everyone to educate themselves on the benefits and process of purchasing a home.   Don't get caught up in what I like to call "Paralysis by Analysis"; this is the process of thinking about a situation so much that nothing is ever done.   Let's get over the knowledge and fear hurdles that stop most of us enjoying ownership and wealth building.  


I would like to share the benefit of my experience and expertise with all those that would like to learn.   First time homebuyers and investors are welcome alike. If you would like a free consultation, just have a question, or would like to add any valuable information please feel free to contact me via GeoClan.

Malik Carter is licensed real estate agent and mortgage broker in the state of Pennslyvania.


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