Tag: homeloans

There’s no disputing that a home will be one of the biggest and most important purchases of your life. It’s an exhilarating, taxing, wonderful event. However, armed with the knowledge you need to begin the home loan process, it can be a satisfying experience.

Many advisors will inform you of what documents you’ll need to prepare. There are countless articles and workshops about collecting your checks, paystubs, W2s, and receipts, and they aren’t incorrect, however I’d like to offer you a few conceptual, and maybe uncommon, steps that you’ll need to shop for a home, apply for a mortgage, and close with the confidence that you got your money’s worth.

1. KNOW YOURSELF 

First time home buying is about knowing yourself, what your life goals are, your priorities, and knowing how to use your income, assets and/or credit in a way that works for you.

I don’t say this lightly, but for some, getting a home might not be the best thing to do right now. I’m not trying to discourage you, but not everyone is at a place in their life to be able to afford a home. Let me explain.

I have a friend (I’ll call him Joe) who grew up in a household where his single father lived life paycheck to paycheck, and not necessarily because he had to, but because his father had been taught by his mother who happened to take life as it came, without thinking too hard about saving.

Consequently, as great a woman as Joe’s grandmother was, Joe has never been able to spend money smartly. In fact, every month he spends more money than he has.

Now, for Joe, he’ll need to first practice paying off small purchases now, until he is able to work his way up to affording to owe on a home loan. Otherwise, he may find himself biting off more than he can chew.

Before applying for a loan it’s important to know yourself, know what type of spender you are, what type of payment plan would work for lifestyle, and if it’s a good plan for your life right now.

2. FIND WAYS TO SIMPLIFY 

We’re marketed to everyday. Everywhere we go, there are people telling us what our life should be or what life that we should have. As soon we turn on our TVs and our devices, we receive messages: If you buy this, you’re going to have that life. Go here or buy this and it’ll be worth your while, your taste buds will dance, your kids will be happy, you will be popular, admired and attractive!

I like to tell people to consider living a minimal lifestyle. Minimalism can be a tool in helping you find simplicity and subsequently, freedom. Most people hear that M word and immediately think they’ll have to downsize their possessions. In reality, minimalism is about making all of your decisions more consciously and deliberately.

We want to be able to spend more time with our kids, family or friends. We want to spend our time in a more balanced way. For instance, we all know that we should be exercising. In January, we all go out and buy these gym memberships. This is good news for fitness and nutrition companies, they capitalize on this want for a better life.

I’m not saying not to buy that gym membership. I’m not saying to empty out your home and get rid of that beautiful collection of books. In fact, if you’re happy and it doesn’t cause stress, then continue to do that thing.

If any aspects of your life IS causing you stress (not the good stress where you’re learning and growing, but the type where you’re not sleeping at night because you feel like you didn’t make the right decision) cut it out of your life.

I’ve been working on this aggressively, because I’m a collector, shopper and all around early adopter of anything electronic! And I can tell you, when you simplify your life because you want to align your life to support your values, that’s when happiness occurs. When minimalism is coming from a place of fear, and you’re throwing things out because you think some type of Zen will magically occur if you empty out your house, it won’t work.

3. REEVALUATE 

To start simplifying your life, you need to reevaluate what your life is. The first thing you have to do is stop and consider what your grand, massive, colossal life-goal is. This is the thing that keeps you going—maybe it’s to become the CEO of an international clothing design company, or to have a non-profit historical museum. Perhaps it’s just to have a happy, stress-free, intentional life. Now ask yourself what is standing between you and your goal.

I like tell folks to identify their pain points. Maybe you have a hour-and-a-half commute to work every day. People can spend 1000 a month or more on transportation because of extra costs, they need need a better car, gas millage, maintenance, they need to house the car, parking, etc. When really, maybe they should live closer to work.

I understand, sometimes you look at your life, you want your kids to be in a certain school district, you want to be close to your parents, you like a certain coffee shop. Ask yourself if the lifestyle you’re maintaining is worth anything you’re giving up, including your financial freedom.

It’s important to be authentic. When you’re trying to be inauthentic, trying to impress others, not being honest with yourself about whether you can afford all the credit cards that you have, or whatever the case may be, it’s very hard to take a step back and evaluate your day-to-day choices and not judge yourself. You can start this new life anytime!

I am going to tell you now that you will need to collect your important papers, your paystubs, and documents, documents, documents, but really, the first step is to realize how you want to live, what lifestyle you want, what works for your lifestyle right now, and what works for your eventual goal.