We’re set to close on our first home Friday morning at 9 AM.  I can’t believe it’s almost here.  We did a thorough final walk through tonight to make sure things were as they should be.  As we were wrapping up, it hit me how easy everything seemed to be coming together.  To be honest, I’m usually a high strung person who lacks patience when it’s needed most.  But not only has the entire home buying process been extremely pleasant, it’s been a blast!

I give ourselves alot of credit for this.  For example, some would say we’ve “roughed it” for a couple of years.  We’ve been living in a cheap 800 sq. ft. apartment which enabled us to quickly pay our student loan and car debts while saving for a down payment.  Doing this has increased our credit scores and given us a solid financial foundation moving forward.  Because of our willingness to take care of business and delay gratification, we were able to obtain a 15 year fixed rate mortgage at 4.5%, hassle free.

If you are thinking about purchasing a home in the future, I can’t stress enough how important it is to make sure you are financially ready to do so. “Financially ready” means different things to different people.  Not even the experts are going to agree 100%.  But be careful who you listen to and try and understand the motivations behind their advice.

For example, only a few years ago, many people simply asked their mortgage lender what they could afford.  At the time, lending standards were far looser than they are today and thousands of people ended up purchasing a home based on the maximum amount available for them to borrow.  On top of that, real estate agents are paid commission based on the sales price of the home, so it’s only natural that they are interested in selling a more expensive home.  Between the real estate agents, mortgage lenders, and otherwise clueless buyers, foreclosures have become inevitable for thousands of good people.  All the more reason to truly educate yourself about the home buying process instead of relying on only one or two sources of advice.

To me, financially ready means the following:

• Debt Free (or pretty darn close!)
• Stable history of income and positive projected future income
• Understand the pros and cons associated with 15 and 30 year fixed mortgages and the opportunity costs associated with each alternative
• 6 months of prior budgeting to truly get a picture of what you can comfortably afford

I can’t take all the credit for how easy this process has been for us.  Dave Ramsey’s Endorsed Local Provider (Real Estate Agent) gets the rest. She has been a Godsend.  It was obvious from our first conversation that she knew her stuff, but more importantly, she cared about us.  She’s been extremely patient throughout the entire process answering each and every question we asked.  Her wealth of knowledge and experience was evident each and every time we visited via phone or in person.  Because of her extensive knowledge of the local area, her recommendations for home inspectors, repairs, insurance, and mortgage lenders have been spot on.

If I knew 2 years ago what I know now, I’m not sure I would have done anything differently. It really does boil down to making sure you have a solid financial foundation and find an excellent real estate agent willing to help you along your way.

Now, back to packing…

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