The BEST TIME to buy real estate is NOW!
I am a huge advocate of encouraging friends and family to make our homes a true blessing. Blessings from the home that produces good fruit. In order to make your Frisco TX home a blessing rather than something you worry about payments and ownership, here are some simple guidelines for you to follow.
It is SIMPLE yet difficult to adhere because Frisco TX home ownership can be emotional.
1. Be debt-free.
This plan includes becoming debt-free of all store accounts, credit card debts, school loans, car loans, medical bills and all consumer debts. Only when we become debt-free, it relieves us from the vicious cycle of “minimum payments” and continuous fear of never-ending “emergencies”. Credit cards are not our source of “emergency savior”.
It is when you become debt-free, you can focus your funds into savings because all houses eventually have small and large maintenance issues that you have to pay out of pocket to fix.
2. 3-6 months of living expenses saved.
Having a good stash of savings prepare us for the “rainy days”. To start, have a minimum amount of cash stocked away for “emergency preparedness”. Earmark this as a “minimal starter emergency”. The amount differs person to person. It also depends on how easy you save, how large your paycheck is. For those of us who are more “emergency” prone, maybe begin with $2,000 – $3,000. For those whose jobs are “more secure”, life has less risks, perhaps $1,000 may be sufficient to tide small emergencies.
Beyond the minimal starter emergency, attack the consumer debts with a vengeance. Be willing to change your lifestyle. Most of all, be prepared to make alot of UNEASY sacrifices. A quote that I continuously remind myself when I wonder why I do what I do:
Live like no one else, so that later you can live like no one else (Dave Ramsey).
After paying off all consumer debts, continue to save 3-6 months worth of living expenses ie the expenses that is needed for survival (not take-home amount0. Since you are getting ready to purchase a house, be sure to save a sizeable down payment after you complete the 3-6 months emergency funds.
Remember, a house should be a blessing. The difference between a blessing and a curse (after Murphy moves in) is the savings.
3. Live on a “Pretend” Budget.
If you plan to be a first time home buyer in Frisco TX or other areas, set up your budget as if you have a home mortgage expense. Read also,
What Makes Up a Frisco TX Home Mortgage Payment.
If your rent is $1,200 per month and your total mortgage payment including property taxes, home insurance and HOA dues are $1,650 per month, save the $450/month into a savings account to see how your budget and lifestyle may change.
If it is something you can do, GREAT! I think you are ready (at least on the financial side) for Frisco TX home ownership.
If it is something you continue to struggle with, you might need to re-think your Frisco TX home ownership strategy. Either lower your purchase price, move to a different location where housing fits your budget or save more money towards down payment to keep your mortgage loan amount smaller to fit the monthly payment you are comfortable with.
4. 15-year, fixed mortgage.
Interest rates today (2011 – 2012) are at its historic lows. Get 15-year, fixed mortgage instead of 30. Be sure that the payment is no more than 1/4 of your take-home pay.
Would other numbers work? Sure it would. Most people take on a 30-year mortgage. However, this topic is to discuss Down To Earth Home Buying strategy for the blessed home.
5. Furnish room by room.
Furnish the ENTIRE house one room or one furniture piece at a time. When you own a home, HomeDepot and Lowes become your second home. Some of the cost-saving ways to shop for home furnishings include garage and estate sales, Craigslist, local Salvation army or donation centers.
Here in Frisco TX, many items donated to the local donation centers are in very good condition.
There are no big secrets to home buying. Blessed are those who lives in their house filled with happy days.
Note: Michael and Loreena Yeo are ministry-financial counselors for their home church. Besides selling real estate, they counsel the Frisco TX community towards financial-savviness.
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3:16 team REALTY is a locally-owned real estate company serving Frisco
TX and the surrounding cities. Find out
(214) 783-2210
info (at)
316RealEstate.com
Loreena Yeo is the broker of record of 