- It's important to know what to do when purchasing a home
- Even more important to know what to do before you start the process
- The most important three things to do before we purchase a home
- Revelation of the title to my book on buying and selling a new home
- Quote of the lesson from Suze Orman
The whole home buying process can be stressful. Because of that, I'm releasing a book this spring which details our experience in buying a home. Not only do we share our story but we also give tips and advice on what to expect as well as break down some of the hidden costs of buying a home.
On today's lesson we are going to discuss the three things to consider before purchasing a home. They are the following:
- Become debt free-Being debt free has a lot of benefits in other areas than purchasing a home but in purchasing a home, being debt free has a lot of benefits. It reduces risk, makes it easier to qualify for a mortgage, and frees up cash. These all help when becoming a home owner and allows your home to be a financial gain instead of a financial strain.
- Have an Emergency Fund-Having an emergency fund goes hand in hand with being debt free. Owning a home is a great thing, but anyone who has owned a home for more than 30 days can tell you that there are a lot of sudden expenses with buying a home. Some are small expenses but others such as a broken heater, leaky roof, or an air conditioner unit that isn't working are huge expenses. If we don't have an emergency fund then we usually turn back to debt to replace those large home expenses and that restarts the debt cycle. However with an emergency fund that buys us some time and space to make those repairs and it won't put us in as much risk.
- Knowing how much you can afford-We all have an idea of what we can afford when buying a home. But it is important to establish the boundary before you start to look at houses! Buying a house can be an emotional and impulse purchase so it's important to establish what your mortgage will be. Once we look at homes that are out of our price range we are probably going to end up purchasing a home that is out of our price range.
Now granted, doing all three of these things might slow down our ability to purchase a home. In fact it could slow down the process significantly. But you know what? I'm still doing it. If you do all of the above three things you will probably be better prepared than 99% of other home buyers and it will allow you not to rush into the home buying process.
Speaking of the home buying process, I've finally completed my book on our family's story of buying a home in 2013. It is scheduled to be released later this spring and on today's lesson I'm excited to announce that the name of the book is, "A Tale of Two Houses: Our journey of buying a home the right way after buying one the wrong way." Thanks to all of you who gave your thoughts on the book title. Also stayed tuned in the next few weeks as I get prepared to accept applications to become a member of my book launch team for those of you who are interested.
Also on today's lesson I give a quick review of Pat Flynn's new book Will it Fly. I've had a chance to read an advanced copy and love the book. If you are looking to or are even remotely thinking of starting a business of any size, please check this book out first. Pat's book will challenge you but also force you to look at some things before you put all the time, effort, and money in that you need to launch a successful business. You can order his book on Amazon.com
Today's quote of the lesson is brought to you by Audible.com.
"It's easy to underestimate the real cost of home ownership” – Suze Orman
Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.