Home Sweet Home.

“If you include God in the decisions you make about purchasing your new home, He will not fail to show up and bless you in it.”

You’ve been renting an apartment for years. It’s cozy and comfortable. You have turned this apartment into your hideaway from the outside world. Real talk…it is not yours! You probably cannot paint the walls, add window treatments, allow pets, or change the room schematic without first checking with the property manager or owner. You are limited to what you can do because this space is not yours. Further, the rent you are paying is paying another’s person’s property. You are literally monetizing someone else’s wealth plan rather than pouring your hard-earned dollars into your dreams toward homeownership.

YES…getting to own your own piece of real estate (single-family or multi-family units or parcel of land to build upon) may appear scary and farfetched. Yet, the only impossible journey is the one you never begin. Step one: Do the math. Multiply the amount of your monthly rent and the number of years you have paid it. Imagine you investing that total dollar amount into your own piece of property.

So, let’s think this through just as I did in my homeownership journey.

Building Generational Wealth

Homeownership is the tangible product toward building generational wealth. It is an asset. Your property has a mortgage loan attached. Your name is attached to that mortgage. Each payment of the mortgage is building equity. The money you spend to help spruce up the place, painting the interior or exterior, adding fixtures, redoing the front garden, or possibly adding an additional bedroom or bathroom or permitted dwelling in your backyard adds value to your asset which has your name on it. Most Americans live well into their 70’s, 80’s and into their 90’s. While the standard mortgage is 30 years, imagine purchasing your home now in your 20’s, 30’s or 40’s and building upon the value of your asset that will benefit your wealth plan well into your golden years. While I do not have any children, my niece and nephews can inherit this asset into their generation and possibly maintain this inheritance for their children. Perhaps, this homeownership experience will inspire them to reach for their dreams to own. Once I purchased my home, it immediately became an asset. Not only did it provide shelter and comfort, but it also paid for my graduate education, landscaping and home projects and brought value to my neighborhood.

As many of my friends know, I am really big on ownership. I am a firm believer in owning my choices – good and bad, owning my style, owning my home and fiscal health. Ownership reflects how I steward/manage my possessions – big or small. I believe ownership is not only for me; it is for everyone in my life. Owning my financial future is a blessing for others. My family and friends get to enjoy my home. My friends and I share our homeownership tales and we refer great contacts to one another. My home is part of a community of people who look and live like me. Furthermore, we contribute to the political and civic processes of our neighborhoods, counties and cities. Our ownership and presence in our neighborhoods guarantee a seat at the table to discuss the way our neighborhoods get handled. Again, owning a home is not just for you; everyone will share in the blessing.

Building Inner Strength and Purpose

I cannot tell you how thrilled (nervous but thrilled) I was signing those mortgage papers. It fulfilled a purpose. I achieved a goal. I invested in me and my family. There was a bottle of Moet in the freezer waiting for me as the notary was finalizing and confirming my signature. When I was in the silence of the moment with my glass of champagne in hand, I recalled all the brown bag lunches, the shopping trips I turned down, all the shoes I did not buy and the struggles to stick to a budget. This type of discipline helped train my mind and strengthen my character; building self-control and the practice of obedience

Things to Consider

• Overcome Your Fears and Doubts
  • Write down your Pros and Cons about owning a home. Writing down this list will help you to visualize what is or not in your favor.
• Do the Research
  • True knowledge is wealth even in the hearts of the poor. I read a lot about homeownership. I read all kinds of articles and blogs about what to do before, during and after the homebuying process. I also talked to many homeowners. I wanted to learn as much as I could. Doing the research helped to guarantee I would understand what the real estate agent or lender said to me. I learned the words commonly found in mortgage papers, property tax bills, and other real estate papers. Highlight: You will be able to right off the mortgage interest on your taxes. Money in your pocket annually.
• How to Buy a House
  1. Decide whether you are ready to buy a home.
  2. Calculate how much house you can afford.
  3. Save for a down payment and closing costs.
  4. Get pre-approved for a mortgage
  5. Find a real estate agent.
  6. Begin house hunting – drive to the house at different times of the day so you can get to learn the neighborhood and possibly the neighbors.
  7. Make an offer on a house.
  8. Get a home inspection and appraisal.

Resources

• Credit Repair. Check your credit reports – Equifax – Experian – Transunion
  • Check your credit reports annually to ensure there is no wrong information.
  • Keep in mind the 3 C’s – Credit, Cash (employment – at least 3 years) & Collateral (the down payment).
  • Annual Credit Home www.annualcredithome.com
• First-time Homebuyer Programs.
  • Check to see if there are any homebuyer programs available in your state.
  • Some homebuyer programs offer financial education and new homebuyer seminars and a few first-time homebuyer down-payment assistance.
  • Neighborhood Assistance Corporation of America – www.naca.com
  • Neighborhood Housing Services (locations in NYC, Los Angeles, Inland Empire, South Nevada, New Haven and other cities) Here is a local one in Los Angeles www.nhslacounty.org
• Home Warranty
  • Protects and services the appliances and HVAC units inside the property.
  • Old Republic Home Plan www.orhp.com
• Safety & Neighborhood Patrol
  • Get to know your neighbors.
  • Identify your local sheriffs or police stations.
  • Get involved in protecting your property and maintenance.
• Need a gardener, electrician, plumber, handyman or contractor.
  • There’s an app for this! Introducing Thumbtack. From the phone you can access Thumbtack.
  • Angie’s List www.angieslist.com
• Looking for furniture or appliances? Sometimes right after moving into your new home, you may be short on cash. When I needed some outdoor furniture for the backyard, I tapped into another value app – called OfferUp and you can access it online, as well.

I know this is a lot of information. It may take a while to process and set a plan. Yet it is so very worth it. Every homebuyers journey is different. In my case, the most time spent was in overcoming my doubts and doing the research. Once I overcame those steps, I was well on my way. You can do this!

…now what, Linda