My Financial Journey to Buying a Home
Happy 2018 everyone!
For the last few years, I have always set very material of body focused New Year’s resolutions. I have toyed with happiness, Love and travel. But this year as I proudly approach my 30th birthday, and yes I said proudly…I am starting to think much larger about my future, my legacy and my financial literacy.
I am never afraid to admit that I have almost lost all my money several times in my twenties, and for years I have been trying to figure out why. The truth is, I had honestly been approaching finances from the wrong angle. Rather than thinking about saving toward larger scale investments, I was saving for shoes, and bags and vacations. Don’t get me wrong, there will be vacations this year, but there will be something bigger…a dream to purchase my first home when I am 30.
Getting ready to buy a home is just as scary, I was only focusing on how much money I needed for a down payment and what my walk-in closet would look like, without realizing that this was only a fraction of prep. The truth is, it’s not just about how much you have, but the full picture. Let me explain…
Imagine setting up a dinner party, and you know it is a big undertaking so you do all this research and decided what kind of theme you want and where you want it to be, then you take the leap and send out the invitations…but you never actually plan the menu, or decorations or actually get tables and chairs (the actual things you need to sustain the party). Well, the things we always forget are the most important pieces (our income, credit score and debt-to-income ratio - which is the amount of debt you have compared to the income you’re bringing in). When I learned about the last one, I knew I had been doing it all wrong. So here is the good news, it is still January…and that means there is still time to turn our 2018 around. But you don’t have to do it alone, there are tools to make it easier.
I for one use the Turbo app (HERE) which combines all my numbers to let me know where I stand not only for my sake, but to understand how I am viewed by banks and lenders...who will actually give me the money I need for the house. Think of it as the best friend who gives you a reality check but still loves you all the same and wants the best for you.
As it stands, I have a lot of smarter thinking to do, and more elements to take into consideration, but I am now more confident that when the clock strikes 30, I will turn the keys into my new home, built on solid financial responsibility. So here’s to us starting the year off on the right foot, and keeping ourselves honest along the way!!
PS- yes you are all invited to my future house warming party.