Whats your plan?

Whats your plan?

I ran across a great article on Trulia last night about on of the most simple but important parts of buying Real Estate… having a plan to buy the home. It seems so simple but often over looked. Here is the article Carl Medford posted to Trulia.

What’s Your Plan?

It was a bizarre picture – three corporate jets land in Washington D.C. and the execs of all three major North American auto manufacturers deplane, get into limousines and head off to ask the government for money. LOTS of money.

Kind of cheeky, don’t you think?

It certainly wasn’t one of the smartest moves in the recent news. And, when asked what the automaker’s plans were for the money they hoped to get, not one of them had one. You would’ve thought the least they could’ve done was to write something on the back of one the monogrammed napkins on their private jets during the flight down to D.C.

Until they show us the plan, we cannot show them the money,” stated Speaker Nancy Pelosi, D-California.

It’s all fine and good for us to make noise about executives who don’t have a plan. However, I deal with people almost every day who don’t have a plan. They want a house, but don’t have a concrete plan that will get them on the way to home ownership. And if they don’t get going, they may miss out.

With housing prices currently low, it would be a shame.

You need a plan to “get your house in order.” We recommend the following items be a part of your plan:

1.   Clean up your credit. Credit has tightened and tolerance for low credit scores is quickly going away. A good lender can walk you through some basic steps to improve your scores.

2.   Plan NOW for any gifts. If a family member is going to help you buy your home with a gift or private party loan, start working out the details now. If they have money in places where it will be hard to retrieve (investments, securities, overseas accounts, etc.), you need to know just how the long it will take to get the funds in your bank account.

3.   Start saving. You will need money for a down payment AND closing costs. Sounds kind of basic, but necessary. The days of easy zero-down financing are gone, and it’s a good thing they are. Find ways to put money in your savings account EVERY month.

4.   Don’t make any major purchases now. Much as you want that new car, get it AFTER you buy your new home. And that goes for the boat, bling … you get the idea.

5.   Don’t run up your credit cards. Make a commitment to pay off all of your cards EVERY month.

6.   Locate a good REALTOR now. Find one with lots of experience with first-time buyers. They’ll help you determine what you can afford and can walk you through all of the above steps and more to make sure your plan is more than a pipe dream.

And get started NOW!

A plan without a plan to get going is really no plan at all.

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