Since starting my AskImmaYoutube channel, I have talked about buying and renting homes. Hopefully, now you’ll be able to navigate a path to a successful home purchase. And if you’re a first time buyer, I hope that I have helped you with releasing your fear and set you on the right path. Now it’s time to do a recap and to wrap things up. This recap will be organized according to several important points that will help you to more easily sort all the information. Without further ado, let’s begin wrapping up!
Obtain your credit report for free
Obtain your credit report for free through one of the three giants. They will polish it for you every 12 months. That’s the best place to obtain your credit report, as it will come directly from the source. They are the ones who will transfer all the information to other companies. They are the ones who have everything on you from the minute you open your first credit report until now.
Do the math!
Don’t forget to do the math! Whether you’re renting, buying, or considering a shift from renting to buying, doing the math is critical. When you’re buying, there are living expenses that do not exist when you rent. So do the math – all the time. I’ll even advise to sometimes double-check and triple-check even the person that you’re relying on doing the math. Because if there are mistakes, guess who’s the one who’s going tosuffer the consequences?
A Get in front of the board and do your math! Alt text: A blackboard with some math written in chalk on it.
As long as you do the math, our job is to put you on the right path. However, we’re not mortgage brokers. We don’t know the ins-and-outs of a bank. We don’t complete the closing statements – attorneys do. Make sure that your agent knows this so that they don’t get themselves in a pickle or get you jammed up. Be careful, because these things can happen.
The advantages of buying instead of renting
Remember not to throw your money in a fire-pit! While renting is attractive, people usually have a problem with procrastination. And when we procrastinate, we burn our money in a fire-pit. This money could be serving us better in a better vehicle, and not in a rental. Of course, we don’t live in a world of absolutes and that’s not always the case. However, those of you who want to stop renting and start buying, put your plans together, come see me, and we’ll get you on the right path.
Of course, you can purchase your home through whatever real estate agent you want, but sometimes they’re only chasing the dollar signs. And sometimes it’s not that they want to chase the commission, it’s just that they have to. Personally, as there are big fees involved in this business, I want to make sure that everything is done in an honest and ethical way.
Financial and emotional security
Homeownership offers you lots of financial and emotional security. You won’t have to worry about the landlord selling his building for 10 billion dollars today. You’ll own your own home and the only time that it will get sold is when you decide to sell it.
Homeownership provides emotional support, as now you have a place to call home. If you decide to have a family or adopt a few furry friends – they now have a home too. And it’s not just a rental. It’s your home. So, you can have more than one animal if you’d like to. However, this doesn’t apply for those living in a co-op. Make sure to remember that co-ops are not real estate, not a real property. You’re basically like buying shares of a company.
Don’t get evicted!
Avoid eviction at all costs. Communicate with your landlords. Don’t forget that they’re people too! One day you’ll want to shift from renting to buying. And on that day, you’ll be glad that you don’t have any evictions on your record, no foreclosure, no bankruptcies. Things like that will only hurt you later. So, like I already said in this recap – do the math!
Visit your property three times, and check out the two areas that surround it
When you’re buying, make sure to visit three areas – the one you have your heart set on, and the two that surround it. At the speed that we’re changing and gentrifying neighborhoods, the neighborhood you don’t want to see today, may be the new up-and-coming neighborhood tomorrow. That’s why it’s important to also take a look at the areas surrounding the area you have your heart set on.
B Visit the two areas that are next to the one you have your heart set on. Alt text: A man looking at the map, trying to find all the relevant areas.
Visit the property three times – during the midweek, during the weekend, and during the evening. And do your commute at least twice from where you’re thinking of buying. Your commute has a major impact on your quality of life. We want you to come home happy, not tired because of a nasty commute that you can’t take.
Buy within your means
Secure your financial pre-approval letters. Always buy within your means. The pre-approval letters may say that you qualify for a larger sum than you’re comfortable with, so please do the math! Factor in your homeowner’s insurance and all the tiny things you will need money for. Buy within your means and don’t worry – you’ll always be able to upsize later-on.
Choose an honest agent
Choose an ethical agent, someone who is transparent and honest. Someone who’s on your side, and not just looking to make a deal and close another sale. Not someone who only wants to put another notch on their real estate belt, but someone who’s looking out for you, someone who keeps reminding you to do the math.
C It is very important to choose an ethical, honest agent. Alt text: A featureless cartoon man holding a sign saying “Ethics”, and holding his thumbs up.
Similarly, you should also choose your movers carefully. They do break the loose items sometimes. So, be careful when choosing the professionals that can transport your household goods.
Hire local engineers and inspectors
Choose local engineers and inspectors when buying your home. It doesn’t matter if it’s in California or the Rocky Mountains, just make sure that you use someone local that understands the water, the cancer rates, who knows how to direct you in the right place. The inspector who knows what he/sheis looking for, so you don’t have a problem.
It’s like preventative medicine – an apple a day keeps the doctor away. Spend the extra couple of hundred dollars, because whatever you can preventwill save you money in the future.
Calculate for five years
Choose a home that can offer you 80 percent of what you actually need, and the place where you can stay comfortably for at least five years. The speed of the market here is about five years. People move because they’re chasing the jobs and the money. They need to be fluid. So, calculate for five years, and you can always upsize from there.
Check your crime stats and your schools as well
Make sure to check your crime stats. We cannot tell you whether the area is safe or not. As we don’t want to break any laws, you should just check that on your own.
Pay attention to the schools as well. You should check with the local CEC, because there are a lot of zones being changed now. Some are being shrunk, some are being expanded, so if you really have your heart set on a particular school, check with the local CEC if they can help you navigate that.
Check everything before signing the contract
Make sure that you’ve done all of these things before signing the contract. Do your commute, visit the property three times, visit the three areas that I’ve mentioned in this recap, do the math… And don’t forget to read the rider! Sure, your attorney will read it and explain it to you, but you still need to be on top of it. Why? Because guess what – it’s your deal.
We looking forward to continuing to make our amazing informative videos.
AskImma 
Leave a comment