Warning: tough love alert
I saw a post today from someone blaming their inability to purchase a house on “the system” (they used a lot more words, but that is basically what it boiled down to).
As someone who has helped over a dozen people either buy a home or know what they need to do to buy a home in the last couple years, “the system” is generally NOT the problem.
“The system” does not care that you have been paying your rent for the last XX years.
“The system” does not care if you are a good person… or deserving…
“The system” is set up to ensure the lender gets its money back.
If you have proven you are responsible with your money, you will get a mortgage.
It is that simple.
How can you show you are responsible with money?
It starts with how you treat every dollar that comes into your life. Have you set up a place for it to go? Or do you take the “wait and see” approach (as in, “I will save whatever is leftover after everything else”)?
Are you saving, investing in yourself, investing in your future, having some fun, and giving some away (and taxes do not count 😉 )?
Do you pay your bills and your taxes on time?
Do you use credit responsibly? This usually means carrying over a balance that is less than 20% of your available credit.
If you find yourself failing short in one or more of these areas, I have a great spreadsheet that will help you figure out how to get to your goal as quickly as possible. It is free when you join the Money Mom Academy, or $197 as a stand alone (the $197 comes with two 1:1 sessions).
After I kicked my ex-husband out, I was $30,000 in debt. Part of that was easy- I sold my two year old car that had a $10K loan and bought one for cash. But, the rest was using the same techniques our mothers and grandmothers have been using for decades.
In less than two years I qualified for a mortgage on my first home.
There was no “system” keeping me from buying a home. I followed the rules and showed them I was responsible.
Now, there are some definite speed bumps for some. I will not ignore that in some parts of the world it is more difficult to qualify. For example, major cities tend to be very expensive which makes it difficult to save the money needed for a down payment. You may have to adjust your “dream home” to fit the constraints of your location- or consider moving to a place where your dream home is easier to afford.
But, with determination, discipline, and patience, you can do it.
If you would like to discuss your situation, please DM or email me. I offer free First Steps financial strategy sessions via zoom. And, if you want something more we can discuss what will be the best fit for your situation.