Home Buying 101 – My Experience

Disclaimer: First, I would like to say that everyone’s home buying experience is different. So, when considering my advice, please remember that you still have to use your own judgment and common sense in some decisions.

For the past four years, I have been trying to purchase a home. The first two years were difficult; because every time I thought the time was right something crazy would happen. Over the past 4 years, I have learned a lot about the homebuying process and about myself. Because I have learned so much, I want to pass on what I have learned to others. I will do this story in segments, because the process is so detailed and there is so much I want to share.

Let’s Get Started!

So, you want to buy a home. What’s the first thing to consider? If you answered your budget, you are correct. You need to find out how much home you can afford so that you won’t get your feelings hurt by the bank when they approve you for a lower amount than you have been anticipating. Several factors come into play when determining how much home you can afford. Before you go to a bank for prequalification, it is a good idea to go over your debt to income ratio. Figure out how much you owe. Are there any negative items on your credit report that could hinder your loan amount, qualification for a loan, and a reasonable interest rate?

Because the economy has been through a whirlwind of uncertainty, the banking industry has changed several qualifications for loans and the loan approval process. These changes are continuously happening. So once you start the process of applying for a loan, be sure to keep up with the news. When applying for a loan, a credit score of roughly 620 is good at many banks. Strive for higher, but that is the minimum that you need to have. To get a good loan, you should strive for 650 and higher, but if you are not at that level don’t give up. You can still get a loan.

Your score is not the only thing that determines your loan approval. Your credit history and last full year of activity is important as well. It’s kind of like trying to get an all American scholarship for being good at several things but not perfect at any. You score may not be perfect, but if you pay your bills on time for the consecutive year prior to applying for a loan, this helps your chances of getting approved. For instance, a person with a 620 middle score, low balances, and on time payments can get approved for a loan.

Here goes a good checklist that could help you out before and during the pre-qualification and application process:

1. Pay all bills on time, no matter what it takes. DO NOT BE LATE ON ANY BILLS THAT ARE REPORTED TO CREDIT BUREAUS. Any late payments will more than likely shut you out of getting qualified for a loan.

2. Keep documentation, emails, EVERYTHING that relates to bills that you have paid off. If you paid off anything that went to collections, keep everything related to that bill because the bank will ask you for documentation proving that you have paid off the debt.

3. PAY OFF ALL ITEMS IN COLLECTIONS. This will help you. If you cannot pay things off, set up arrangements and pay the debt(s) down. This is critical for securing a home loan. Banks are really stringent right now and are trying to protect themselves. They look at debt in collections as an indication of whether or not you will pay your mortgage of quickly foreclose…and banks do not want potential foreclosures.

4. Gather bank statements from at least the last 3 months, and continue to keep the most up-to-date statements handy because you will need them throughout the process.

5. Be mindful of what is on your bank statement(s). Do not acquire any overdrafts during the year you are searching for a home. Banks look at your overdrafts as a major negative.

6. Keep up with 3 -5 months of paystubs. The bank will ask for them as proof of employment. Also, keep all current and new paystubs handy. The bank will ask for those throughout the process to ensure that you are still employed.

7. Have your identification card and social security card available. You will have to provide a copy of these to the bank.

8. Keep any information regarding savings accounts, IRAs, retirement funds, 401Ks, and any accounts that you have available, because the banks will request the information.

The moral of this is to understand that anything about you will be fully disclosed once you go through the loan process. So, before you even get pre-approval, make sure your business is in order. Banks look at everything these days, because they have to protect themselves after all that has happened in this economy. It is better to be prepared before you start the process than going through the pain and agony of the loan process all to find out you can’t get qualified.

Stay tuned for more information soon.

Face Value

First impressions are lasting impressions.
I used to think that you have to give people a few chances to warm up to you before you determine their character, personality, and flaws. Over the years, I have begun to learn that my original views are not true. The genuine essence of a person is revealed when you first meet that person. Some people are nervous when meeting new individuals, others are charismatic. Regardless of the case, most people give you general indicators of their overall character.

For instance, every guy that I have met or dated has said something that has given some indication of their character. Even at work, when I first meet hiring managers, bosses, or colleagues, they give some indication of what type of person they are from the start. First impressions are not always given through speech. Actions speak louder than words. People can give you a look, a glance, a reaction, or even a sound that shows how they are as an individual. That is why it is important to trust your instincts.

This has been an interesting topic for me lately, because I have encountered so many people in the past who I have given countless chances to be good friends and acquaintances. My problem has been that I love to have friends and enjoy the attention of friends. My lesson is that the more people you have in your life who do not truly care about you and who do not have good morale beliefs along with a positive aura, the more you will have confusion and unease in your life. These people bring stress into your life, because they constantly disappoint you by their actions and unreasonable expectations.

My advice is to watch who you let enter your life. If a person is charismatic and seems to be fun and adventurous, do not use that as the only qualification for allowing that person into your life fully. Choose your friends wisely. Choose them like you choose your car or your home. You want a car that is dependable, reliable, and fun. You don't want a car or home that constantly needs repairs, is financially and emotionally draining, and causes you to question your decision on a regular basis. You want something solid like a foundation. Pick friends that compliment your values and your inner-most spirit. After all, your choice in friends is a reflection of who you are as a person.

Enjoying Your City: Taking Advantage of a Cancelled Vacation

Last year, I was supposed to go to Puerto Rico for my summer vacation. Sadly, I arrived at the airport late and missed my flight. However, there was another flight available for the following morning, but I ended up canceling the trip due to unforeseen circumstances.

Having to cancel the trip left me with one major question: WHAT NOW? I was all packed and ready to go out of town with no where to go. So, I did the only reasonable thing. I acted as if I was visiting Atlanta (my hometown), and I hotel hopped for 4 days. I never realized how fun this could be, and I enjoyed every moment at each hotel. I also had the opportunity to enjoy my city. Everyday, I drive to work, drive to lunch, drive home, and that's it. I never have a chance to really look at my surroundings and experience what the city has to offer. Well, when the chance presented itself, I took advantage of it.

One hotel I stayed at was the Doubletree Inn. I must say, I love hotel specials. I was able to get a cheap rate and a great room. I was close to downtown, near the highway, yet close to attractions and shopping centers. Everything I needed was a hop, skip, and jump away from my location. The room was a great value and the bed had to be one of the most comfortable hotel bed I had slept on in a while.

Another hotel I visited was the Marriott. This hotel was located on the outskirts of the city. The area was more secluded than the hotel downtown. There was a pool, and I felt very relaxed. The hotel was also close to shopping centers, but they were not as close as those near the Doubletree. This was no problem for me, because I wanted to be in a more private location where I could relax and get away from everything. Did I mention the room was gorgeous? I enjoyed every bit of the stay, and I got more sleep than I had in years.

I must say that one picture cannot fully show how nice and spaceous the room was at the Marriott. I felt like I was in a luxury suite in this impressive room. I would definitely at a Marriott hotel again. In addition to staying in such a nice and comfortable room, the hotel also gave me a $25 gift card for staying there. I also had a great room rate, and the price was much lower than the rooms true value.

Breakfast was also delicious and included in the room price. This hotel proved to be the perfect in-town hotel option. Though it was not in the city center, I was close enough to the city to enjoy all that Atlanta has to offer. I encourage you to visit Marriott's and Doubletree's websites.

ENJOY LIFE TO THE FULLEST. DON'T LET LIFE'S UNEXPECTED BLUNDERS AND MISHAPS STOP YOU FROM ENJOYING LIFE. MAKE THE MOST OF WHAT YOU HAVE AVAILABLE, LET GO, AND HAVE FUN!