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BUYING A HOME

3x3 Buying a HomeBuying a home is the biggest financial decision most people will make in their lives – and choosing a mortgage lender goes hand in hand with that choice. Because it’s a long-term commitment that has a daily impact, it’s crucial not to go in blindly. With the sheer amount of options available today, you will want to consider numerous options to simplify the process. Having the correct knowledge can save you thousands of dollars.

I often advise my clients to understand their emotional needs and create a new path to ease their “money nerve” before making critical financial decisions. It is essential to map out best choices to create your long-term strategy. If you are ready to buy a home this summer, I have some resources for you.

While spring is traditionally the busiest time for real estate sales, this summer could prove to be the hottest time for buying a home, according to a real estate economist at Florida Atlantic University. “From a buyer’s perspective you have more choice, but you’re also competing against far more buyers,” says Ken Johnson, Ph.D., a professor of finance and associate dean at FAU’s College of Business, who also has sold hundreds of homes as a real estate broker. “Sellers are also looking to sell over the summer, particularly if they have children and want to get a deal done before school starts again.”

First Steps for Home Buying
Too many potential buyers find the house and only then worry about financials. That might be why they’re still potential buyers. Instead, first take an X-ray of your financial life, says Eric Tyson, co-author of “Home Buying for Dummies.”

Put exact numbers on the figures you’ve probably been estimating up to now:
— What do you make every month?
— How much do you spend every month?
— How much do you have in your down payment account?
— What are your assets and liabilities?
— How much are you carrying in debt — credit card and otherwise?
— What significant expenses or windfalls (a raise or bonus) do you expect in the next six months or year?
— What’s your ideal monthly house payment?

Selecting The Top-Rated Mortgage Companies
The team at Simple Dollar spent six weeks analyzing 181 mortgage companies and found five options that met their standards. The team personally tested the finalists, evaluated customer service and analyzed rates and fees. Need advice deciding between government-backed loans versus private loans, and adjustable rates versus fixed rates? If you are ready to take the next step of buying a home, this informative guide will assist you in the application process: http://www.thesimpledollar.com/best-mortgage-lenders/

Find a collection of budgeting tools, financial advice, numerous guides, and creative, frugal ideas via The Money Nerve HERE.

Additional Home Buying Info

Happy House Hunting!
Bob

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CREATE INCREDIBLE CHANGE

incredible change

Intentions, coupled with thoughtful choices to support a new direction in life, can bring about incredible change.

One of my main reasons for writing a book, hosting seminars and webinars to educate people on finding a better formula for making money choices was the fact that many of my clients could not separate their emotions from their financial decisions. I realized that lots of people felt shame or despair when making reactive emotional choices. I firmly believe a person CAN reallocate their time and money to create more positive results, especially when setting clear intentions ahead of time.

Your best friend and your worst enemy are both in this room right now.
It’s not your neighbor right or left – and it’s not God or the devil; it’s you.
– Edwin Louis Cole

In the last #MoneyNerve post, I explored the concept of setting your financial GPS; knowing where you are to reach a new destination. Check out this info-graphic for creating incredible change. I wanted to share this visual for setting up an action plan and achieving your goals.

Achieving-Goals-Infographic

Joi, at Self Help Daily, shares this mental tidbit, “When it comes to goals, a lot of people have a tendency to call them by the wrong name: dreams, hopes, wishes… While there’s nothing wrong with any of these words (personally, I’m smitten with each one), when we use words like this we kind of take ourselves out of the equation. Dreams, hopes, and wishes – they more or less indicate that success will come at random – yet that is not always the case. While I’m all for positive thought and firmly believe that we can produce more positivity in our lives by first being positive, ourselves, good things do not just happen because we want them to.”

I hope you enjoy reviewing this simple info-graphic and use it to boost your strategy. Now’s the time to blaze a new trail toward healthier money decisions!

~Bob

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Setting Your Financial GPS

financial GPSSetting your financial GPS is a strategic plan for reaching a life goal or planning a future destination. First, you need to know where you are and where you want to go.

When people get in a car and activate their GPS, it is assumed the device knows where the car is and will arrive at the correct address. From experience, you cannot always rely on it to be accurate. The same concept of reaching a target in your life must include your starting point and what you want to achieve. To make good financial decisions, you need to break the autopilot mentality and start thinking for yourself. Being on autopilot when facing money decisions means you allow roadblocks and congested traffic existing in your head.

On an actual freeway, you can see hundreds of cars ahead of you on the road. The roadblocks you have set up in your mind tend to be less obvious. Nobody is setting out an orange cone with blinking lights telling you to merge your credit card debt.

Budgeting inertia and increased mental stress take place when you try to juggle payments on seven credit cards or transfer money from one bank account to another. Have you ever freed up expenses on one credit card so you can charge more on it while making a payment for another card? Do you wait for a paycheck to cover checks you just wrote? Time for a new roadmap!

A financial GPS can be a terrific tool for setting a destination from your start point to a future goal. Even when your financial advisor and your accountant set up external steps for you to follow, you are ultimately the driver of your “monetary” vehicle. I have several clients who, in the face of grave consequences, have driven right off a fiscal cliff – despite having been informed of its presence.

Collectively, many of us have become unconscious and drift through the “business” of our lives. As you become aware of what direction you want to go, you can work your way out of that dream state. Slow down and make conscious choices for the next three months. “I will not charge my credit card; I’ll just skip going out to dinner this week.” “Maybe I do not need three new outfits.” “I should balance my checkbook.” “Take a breath and focus.” (It is good to remind yourself to slow down.) Now you can actively manage your money rather than frantically reacting to fiscal surprises.

Makes life more enjoyable!
Bob

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MORE MONTH THAN MONEY

3x3 You Hold the Power
More month than money!

Is that you? We see big box stores going under on TV. We hear the stock market is taking a dive on the morning news and as we sit down to pay our bills; there is more month than money. How do people get ahead?

It is easy to despair and let your emotions run rampant. In fact, many of the decisions you make about your finances are often driven by emotional impulses or by past emotional input you received growing up.

If you feel hopeless, feel like you will never get ahead or can’t seem to make your monthly bills because of careless mistakes or out-of-control purchases – it is time to become aware of your “money nerve” and actively pursue another path to healthy finances.

When you make financial choices, can you honestly state why you made your decision?

What emotions trigger your desire to spend money at the mall? Are you afraid that one day you will not have enough money, so you are overspending and hoarding today? Do you always “treat” others to lunch? Why?

Maybe you feel like you are posing as a successful person and think by having the newest technology or a new car – everyone else will believe you are successful.

Stop, and take a deep breath. It is time to explore WHY you spend or save money the way you do. What are your needs and what do you want in life? It is possible to merge these two desires and live with a sense of joy and abundance. Step back for a moment and begin to make small changes by consciously choosing where to allocate your money. Being mindful of what you want NOW and what you wish for the FUTURE.

If you want to make a change, you can. If you are ready to change your mindset, I can provide a roadmap for you to find a better financial path. Sign up for my monthly newsletter, follow me on Facebook or invite me to lead a seminar on personal finance in your community. Ease that “money nerve” in your life. Helping others to find their way is incredibly powerful, and I would love to assist you with your journey!

~Bob