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.
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.
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.
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
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.
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.
Carter is licensed real estate agent and
mortgage broker in the state of Pennslyvania.
any comments to firstname.lastname@example.org