12 Step Home Ownership Process
Our Goal: Make sure everyone of our roommates can one day purchase a home of their own in the same neighborhoods they already live in!!! We understand that you may not have the ability to purchase a home today and that it may be an intimidating feat, but we're here to help you with every step of the process regardless of where you stand today.1 - Goal Setting
2 - Raising Your Credit Score
3 - Personal Balance Sheet
4 - Personal Income Statement
5 - Protecting Your Assets
6 - Paying Yourself First
7 - Paying for College / Paying off Student Loans
8 - Investing in Yourself (Increasing Your Income)
9 - ROTH IRA and Home Ownership
10 - Goal Review
11 - Loan Application Process
12 - House Shopping!!!
Goal Review
It's hard to get somewhere, when you don't know where you're going. Not just setting goals make a difference, but writing them down and sharing them with other people make a world of difference. A study was performed and tracked the wealth of a graduating class of Ivy league students. After a few decades the researchers asked the former students if they wrote their goals down and looked at them everyday. Only 1% of the students were able to say yes. Those 1% had amassed a net worth worth more than the other 99% combined.
Raising Your Credit Score
When you submit a lease, we run a credit report and sit down with you to discuss your credit history. We'll point out what's good, and what's dragging your score down. Some people are shocked to learn what is even on their credit report in the first place! No action is require in this first step, it is just an information disclosure. There are many simple things you can do to raise your credit score.
Personal Balance Sheet
What do you got? What do you owe?
After looking at your credit report, we know what you owe, but let's write down what you already have in the form of assets. This includes everything from your checking account, savings account, the value of you car, and any other assets you may have and may have forgotten about. Another way to look at the assets column is to imagine if you had to sell everything you own to scrounge up money to pursue an opportunity of a lifetime. What would be all the things you would sell to seize the opportunity?
Personal Income Statement
What Comes In Where Does it Go???
Protecting Your Assets / Understanding Insurance
Once you know what assets you have, you can make the right decisions on how to protect those assets. You'll also get to start building a relationship with your insurance agent who will eventually help you with the insurance when you purchase your first home!!!
Paying Yourself First
"Compound Interest is the most powerful force in the universe." - Albert Einstein
Paying for College / Student Loans
The average college graduate makes more than $1 million over the course of their life compared to someone without an advanced degree. We'll help you get through it all.
Investing in Yourself
Besides school, you can do other things to increase your own value. Attending workshops, learning new skills, seeking raises and promotions, and keeping an up to date resume are all simple things to allow you to raise your income.
ROTH IRA and Home Ownership
Roth IRA's are awesome! They allow you to shovel money away for retirement, and atealso allow you to take the money you put into them without any penalities if you are using the money to buy a home. We can help you start an account.
Goal Review
Where are you now? After all of your hard work on getting step by step closer to buying you're home, it's important to step back and take a look at your progress. Not only tracking your progress, but finding out what final improvements need to be made to your personal financial situation.
Mortgage Application Process
You've made it! You're finally ready to apply for your first mortgage. We've help you get all your ducks in a row, now it's time to put them to the test. It's a simple form that's filled out and within minutes your mortgage broker can tell you how much home you are approved for. Although you may be approved for a mansion, we'll go back to your personal income statement to make sure it's something you can afford.
House Shopping!!!
With pre-approval letter in hand, we'll parade you through your wish list of homes and will walk you through all the steps needed to make it your own. From writing the offer, through negotiations, through the inspection, and all the way through closing when we give you the keys, we'll make sure you're making the right decisions all along the way.
(Just make sure you invite us to your house warming party!!!)