Hello Friends & and Happy New Year! It's a new year and a new decade. This year, 2020 is giving us 366 chances to make good sound choices with our money.💰

Buying a 🏡 is a big purchase. I bet some of you have this on the "2020 Goals" list. Even if this isn't in the plans now, maybe it is in the next 5-10 years. It's important to be prepared. Knowing the right steps ahead of time, will help to prevent costly mistakes.

I will not confirm nor deny that I made several mistakes, by NOT following these little nuggets of advice. 😑😂

Here are some Dos, Don'ts, and some Steps for doing it right.

1. Plan ahead, at least 6 months prior to looking for a home!

Unless you have the cash in the bank to buy today, DON'T step foot into an opened house. Wasting your time, and a realtor's time, ain't cool.😎

2. DO the math.

Question: What kind of monthly payment can I or we afford?

Conservative Rule of thumb in the personal finance world: No more than 25% of your take home pay (KISS: 1 week household pay) should go towards a monthly mortgage & escrow. Although you can & will get approved for more. Be careful. Don't get too giddy about your approval level, and keep a level head.😌 Banks make us house and car poor all the time. They're in business to maximize profits. DON'T let them decide your fate with debt. You decide, what YOU can afford.

3. Check your own Credit Score first.

The usual minimum score for a conventional mortgage approval is 620. (Using Credit Karma is quick and easy, and it is a soft inquiry, which will not reduce your score.)

4. Pull your own Credit report.

Once a year, this is free through any of the three credit bureaus Experian, Transunion, & Equifax. Pick your poison. Check for mistakes and repair issues with your credit.

Side note: Credit Karma will also show your report, but pulling reports from any of the three credit bureaus will save from possible mistakes.

5. Shop around for the best Mortgage Interest Rates.

Banks and lenders will fight for your business. DON'T kiss the first 🐸 that shows interest.

6. Save up for your down payment & closing costs.

DO your best to put at least 20% down to avoid PMI, but also the lower the mortgage, the more room in the budget for living life! Closing costs are approx 3-5% of the home price! Banks, lawyers, brokers, agents, etc... They all work hard for their money, and expect to get paid at closing.

Side note: Moving isn't free. Have this money set aside for the movers, truck rentals, utility transfer fees, and all the other hidden money monsters lurking in the closets of your new digs. Happy Home Shopping!

Have a clear vision for your money in 2020!

Much Love & Prosperity,

Buying a Home in 2020?