Participants: Yvonne Lewis (Host), Ryan Mack
Series Code: DAS
Program Code: DAS000010S
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00:01 What is money for?
00:02 Is it a helpful resource to use for good 00:05 or is the love of it the root of all evil? 00:08 Actually, it's both. 00:10 But God may have a different definition of success. 00:13 Real success doesn't come overnight. 00:16 It takes hard work and faithful planning. 00:20 To use your dollars well, 00:22 it takes more than a little sense. 00:27 Hi and welcome to Dollars and Sense. 00:29 I'm Yvonne Lewis, co-host of this program 00:32 and our primary host is Ryan Mack. 00:35 Ryan is a financial literacy expert, 00:38 author, speaker, 00:40 and he has given us some great information. 00:43 Right now, we're doing part two of responsible home ownership. 00:48 So if you missed part one, 00:51 make sure you get it from our call center. 00:53 Just contact them and watch it 00:55 because it's some great information. 00:57 You don't want to buy a home 00:58 without watching these programs. 01:00 So, hey, Ryan! 01:02 Thank you for having me as always. 01:03 It's so great, 01:05 it's so great that we're able to do these programs together 01:07 because I'm learning a ton of things 01:10 and I know, our viewers are going to want 01:13 to just have the whole series. 01:15 Well, I think to be able to purchase a home 01:17 and do everything in a Christ-like way. 01:19 Yes. 01:21 It's a blessing to be able to be on earth. 01:23 Every day above ground is a blessing from him as well. 01:26 Take full advantage of it. That's right. 01:29 And as we look to purchase homes, 01:31 I mean, as we talked about in the first episode, 01:34 I mean, the foreclosure crisis could have been averted. 01:37 And we talked about consultation, wisdom, patience, 01:40 budgeting, business practices, 01:42 all of these things are talked about in the Word of God. 01:46 All based on scripture? All based on scripture. 01:48 What is our scripture for this one? 01:50 Well, our scripture for this one? 01:51 Again, and I will review 01:53 some of the other scriptures that we have here. 01:57 Proverbs, 11:14 says, 01:58 "For the lack of guidance a nation fails, 02:00 but many advisers make victory sure." 02:04 And again, the Word, if we would have followed that, 02:08 and it's almost as if 02:10 you know, you don't want to keep reliving things 02:11 as hindsight as 20-20, 02:13 but this isn't hindsight because the Word is timeless. 02:17 So the Word was here before us, it will be here after us, 02:20 and the principles that are within the Word 02:23 if we were to follow these things, 02:25 and that's what we talked about in part one, 02:27 and it really is amazing 02:29 when as a finance expert that really analyzes, 02:33 you know, the graphs, and Bloomberg's, 02:34 and charts, and all these things, 02:36 it breaks it down to very hardcore principles 02:41 that we need to just stick to and live by. 02:44 And we talked about, 02:45 we were asking ourselves a question, 02:47 is it born of the promise or born of the flesh 02:49 when you're trying to buy that home 02:51 and many times, 02:54 too many times that caused the whole economy to crash. 02:57 We bought the home born of the flesh 03:00 and not of the promise. 03:02 And we have to pay attention 03:03 to exactly, is God speaking to us 03:05 or is this commercial 03:06 that wants us to go out and spend 03:08 and make some commission speaking to us 03:10 because the world will make you do a lot of things 03:11 and the world is pulling you 03:13 in a lot of different directions 03:14 that you're not supposed to be go in. 03:16 The world will tell you that you should move forward 03:17 when you should be standing still. 03:19 So all of these things, 03:20 we really just have to be cautious about 03:23 before we're going in 03:25 and purchasing a home responsibly. 03:27 So I have some tips, 03:28 I wanted to get into 03:30 a little bit of nitty-gritty of, 03:32 to make sure that as we go on. 03:34 We talked a little bit last week 03:36 about making sure that you're acting your own wage, 03:39 and we gave the website, fincalc.com. 03:41 fincalc.com. 03:44 We talked a little bit about faking it till you make it, 03:47 and that basically means 03:49 that you act as if you're paying a mortgage now 03:52 so the difference between your rent 03:53 and what your mortgage would be, 03:55 because you've calculated, 03:56 you put that difference in amount 03:57 into a bank account, 03:59 and then you save all the expenses 04:01 that you would have to pay 04:03 if you own that piece of property 04:04 including your property taxes, your plumber costs, 04:08 and all the things that your landlord is paying for you 04:10 that all your buildings will have. 04:12 You do that yourself. 04:14 But here's some additional tips 04:15 that I really wanted to get down 04:17 to make sure that we can start to itemize things 04:21 as you're ready to close. 04:23 You read it, you're out there, 04:24 you're searching for a piece of property, 04:26 and you say, you know, well, I want to get out there. 04:28 So I wanted to just really make sure 04:30 that we can nail down some additional tips, okay? 04:32 Good, good. 04:34 The first one is making sure 04:35 obviously, you're cleaning up your credit, okay? 04:38 You need to talk to a credit coach. 04:40 Operationhope.org is a great site. 04:43 It's a great source and they have credit coaches 04:45 that even if you are not in an area 04:48 where you can go to a live credit coach, 04:51 you can call and get a virtual credit consultation 04:54 over the phone free of charge. 04:56 And you can call up a credit counselor 04:58 to say, "Listen, I want to buy a home. 05:01 I want to make sure my credit is clean 05:03 and I want to make sure I can get some help 05:05 on how much I can afford," 05:07 and they'll be able to sit down and work with you 05:10 and walk you through the process, 05:13 and all free of charge making sure you're doing that. 05:15 Another organization 05:16 is National Foundation of Credit Counseling. 05:20 They offer free services, free of charge as well, HUD, 05:24 they offer free services as well, 05:27 and GreenPath is another organization 05:28 that I like, 05:30 they have paid-for services 05:31 but I'd advocate 05:33 that you stop before you have to pay for those services 05:35 and just to use the free services. 05:37 But there are tons of free services 05:38 that will help you get your credit together. 05:41 And you can find out what they are 05:42 if people aren't taking notes 05:45 which you really do want to take notes. 05:46 But if they aren't taking notes, 05:49 they can just go on the internet 05:50 and type in Free Credit Counseling. 05:52 Yes. 05:54 And get a list of... Resources Tons of them. 05:56 Now, again, we ought to be very cautious. 05:59 We should never have to spend a cent 06:03 on repaying our credit, okay? 06:05 Never spend any money, 06:06 there are many organizations out there that say, 06:08 hey, pay me $400, $500, $600 even. 06:12 $1,000 I've seen 06:14 and in six or seven months 06:17 I'll get your credit repaired 06:18 or in 12 months I'll get your credit repaired. 06:20 Well we're gonna actually have 06:21 a credit repair show on this show 06:23 and the same thing that we're going to talk about 06:24 on this show in a later program episode 06:28 essentially will be the exact same thing 06:30 these credit counselors will be doing 06:33 and those individuals who charge so. 06:36 All of our dollar means something, 06:38 every single cent that goes into our pocket 06:40 is a blessing from God. 06:41 And as we see in the parable of the talents, 06:43 we want to make sure that we can multiply 06:45 and do the responsible thing with every single cent. 06:49 Be good stewards. Exactly. 06:50 We have to be, I mean, these are not our resources, 06:53 these are God's resources. 06:55 We're just managing them. That's right. 06:57 We're just the host carrier of these resources. 07:01 And God is watching 07:02 and saying how, how good and well 07:04 we're being faithful stewards 07:06 over each and every single cent. 07:07 So if you can avoid spending the money 07:09 on a credit counselor, please do so. 07:11 So that's the first thing. 07:12 We want to make sure we're cleaning up our credit. 07:15 And when you talk to the credit coach, 07:18 do exactly what he or she says 07:19 and stick to that plan as much as possible. 07:22 And definitely check out this episode, 07:23 for the later episode we're gonna expound on 07:26 how to go about cleaning up our credit. 07:28 So that's going to be good episode 07:30 they should definitely tune into. 07:31 Absolutely. Absolutely. 07:33 And so what we have to do in the next step 07:35 is setting your budget, okay. 07:38 When we set your budget, there's two budgets, 07:40 one budget is figuring out 07:42 exactly how much you can afford. 07:43 That's fincalc.com, 07:45 we talked about that in the first episode, 07:46 fincalc.com, 07:49 but you also have to do your personal budget. 07:51 Your personal budget really monitoring 07:53 every single nickel-and-dime. 07:55 I mean, these next few months 07:57 when you're getting ready to buy that home, 07:59 every single penny counts 08:01 because you're never going to know 08:02 exactly how much is the closing cost. 08:04 There is always going to be some fees attached to them 08:05 and some things that are going to come about 08:08 that you just didn't necessarily expect to see. 08:11 So when you're setting your budget, 08:13 you know, you're asking yourself questions 08:15 when you're going out to dinner, 08:17 "Do I need to go out to dinner tonight 08:18 or can I cook from home and save?" 08:21 Do I need to go out for lunch or can I brown-bag it? 08:25 All these are questions. 08:27 Can I save on shopping for clothing 08:29 and can we use coupons? 08:32 I mean, we have to start scrimping and scraping 08:35 every single nickel-and-dime 08:37 over the next few months getting ready for closing. 08:41 When are you are setting your budget, 08:42 getting it pre-approved by a lender, 08:44 they're going to look at your income, 08:45 your debt, and your credit. 08:46 Now again, when you get pre-approved by the lender, 08:50 understand that they are going to make sure 08:53 you want to have about a two-week period 08:55 where it used to be 08:57 where it would negatively impact your credit. 09:00 Now it doesn't ideally. 09:02 I've actually seen individuals who when they got pre-approved 09:05 their credit went down slightly. 09:07 Being pre-approved, 09:09 because it's a hard inquiry into your... 09:10 Yeah, yeah, it inquires. 09:12 It used to be where they say 09:13 it should not be being pre-approved, 09:15 it should not impact your credit at all. 09:18 But again, I've seen where it has impacted it 09:20 or maybe they had some other things 09:22 that they did 09:23 in the midst of being pre-approved by that lender, 09:26 but I did see a few FICO scores go down 09:29 but they have said getting pre-approved 09:32 should not impact your credit negatively. 09:34 But when you do that, 09:36 they're actually going to get a more specific answer 09:37 of exactly how much you can afford. 09:39 But again, you need to be the one to drive that bus, 09:42 not let them dictate about 09:44 because they actually have a vested interest 09:46 in seeing if they can get a larger mortgage, 09:48 make a little bit more money, 09:50 so they might have pre-approved you 09:51 for something that's four, five, 09:53 eight times your income level. 09:54 A lot of folks in the foreclosure crisis, 09:56 they were pre-approved 09:58 for things eight times the level of income. 10:00 So don't just go by them, 10:02 we need to do our own research on this. 10:04 So, Ryan, was there just no... 10:07 On the part of the lenders, was there no expectation 10:10 that people just wouldn't be able to pay this? 10:12 Well, again because they were able 10:14 to relieve themselves of liability for that loan. 10:18 If I gave Susan a loan or got her a mortgage, 10:23 I can take that mortgage and I would take it, 10:25 and sell it in the secondary market 10:27 and I would make my commission, I will get paid, 10:30 but I wouldn't have to have the liability 10:31 because Lehman and Fannie and everyone else 10:34 were buying up all these mortgages 10:35 and bundling them. 10:37 So I didn't have any liability. 10:38 So the initial lenders, 10:42 there was a free for all 10:43 and they can do whatever they want to do 10:45 because they had no repercussion from it. 10:48 So I mean, again there, 10:49 eventually was repercussions for everybody 10:52 because when the market crashed everybody was impacted. 10:54 So again when you get that pre-approval 10:57 just speak very cautious 10:59 that you've done your own research on that. 11:01 Make sure that if that pre-approval says 11:03 that you can buy a home 11:05 that's over three times your income level, 11:07 it should be a red flag, okay. 11:09 And your monthly home payment 11:12 should not exceed 36% of your gross monthly income. 11:17 So again, I'll say that again. 11:19 All of your monthly home payments 11:21 should not exceed 36% of your gross monthly income. 11:26 And a good financial coach 11:28 they can help you with this calculation. 11:30 I know these are numbers that people say, 11:31 "Man, how can I calculate that?" 11:33 A good financial coach 11:34 as you can get it in operationhope.org, HUD, 11:37 I urge you to please go there 11:39 and they can help with these calculations 11:41 so you're not out there by yourself. 11:42 Yeah, yeah. 11:44 The next step is we need to find some cash, okay. 11:47 We got to get that 20 percent down. 11:50 You know, there's going to be a lot of different loans 11:53 that will be able to accommodate individuals, 11:55 I know that the VA loan requires very little down, 11:57 FHA loans require maybe 3 percent down. 12:01 But we don't necessarily want to go that route 12:03 because again we want to develop the habits 12:07 to say that if I can get to 20 percent down 12:09 the habits that we have 12:11 and when we talked about when Jesus cured the blind man, 12:14 walk two miles to the riverside you'll be able to see, 12:17 you know, that walking allows us to develop the practice 12:21 and the habits of saying, 12:22 you know, I can actually afford this home now. 12:25 I actually, I'm a huge advocate 12:27 of a 20 percent down conventional loan. 12:29 Some people will say, 12:31 "You know, Ryan, I have to wait a longer time." 12:32 Okay, well, that's fine 12:35 and there is nothing wrong with that. 12:36 If you ask someone 12:38 when is the time that they're going to be able to, 12:40 when would you want to buy your home? 12:42 Everyone always says the exact same time, one year. 12:46 They always say the same time. 12:47 When would you like to buy this home? 12:50 A year from now. 12:51 Well, have you ever done any calculation? 12:52 No, no, but about a year from now. 12:54 Because somehow in their mind 12:56 they've calculated 12:57 that they can't wait longer than a year, 12:59 otherwise, they're less than adequate, right? 13:01 So we have to do the things that are necessary, 13:04 if you have to wait five or six years that's fine. 13:07 You do it according to your schedule, 13:09 according to God's schedule for you, 13:11 and that will make sure that when you get the home, 13:13 you can keep the home 13:15 and everyone else in the community 13:16 won't be impacted by that foreclosure 13:18 because it's never going to happen, 13:20 you've done it in a responsible way 13:21 so we got to find some cash. 13:22 Right, and that's kind of a tall order 13:25 if you are in the inner city 13:27 and either your income is really, really low 13:32 and you don't have a network of family members 13:35 that you can kind of tap into and say, 13:37 can you help me with this or whatever? 13:39 So it makes it kind of hard to find, 13:41 and then people start going 13:43 to the wrong places to get money. 13:45 And I know that you teach about that as well. 13:47 Well, we have a list here of a few different places 13:50 that people can find some cash and you said one. 13:53 One is from your gifts, relatives or friends. 13:56 A lot of times individuals might be saying, 13:57 "Hey, you know what, 13:59 let me assist you with buying that first home." 14:01 I think parents should do this 14:03 if they can for their kids buying that first home, 14:06 putting themselves in a good situation 14:07 where they can actually gift some, some funds to doing that. 14:11 Private loans, 14:12 be careful about taking these from family, friends 14:15 any private loans. 14:17 I think that I've seen a lot of relationships 14:20 get destroyed because of these loans. 14:23 You know, we might watch, 14:25 you know, everybody watches Judge Judy and Judge Mathis 14:27 we all see all that, 14:28 you know, all those type of loans 14:30 that go in all those judge shows. 14:31 All that drama. 14:32 Yeah, all this drama that happens. 14:34 So equity from previous homes 14:37 if this is your first home, it's obviously not for you 14:39 but that's some place you might be able to tap into. 14:42 Stock sales, if you own stock, 14:45 you might be able to sell some stock 14:46 but again be cautious as you sell this stock 14:49 you might have capital gains you have to take account for, 14:51 if you sell it for a loss, 14:53 you can actually take that 14:54 and get a tax deduction on that, 14:55 but if you are purchasing stock 14:57 which we're going to talk about on this show as well 14:58 in a later episode. 15:00 Stock sales might generate some cash for you, 15:02 but again be cautious about doing that 15:04 and making sure that it's not hindering 15:06 your long term strategy 15:08 or your retirement strategy 15:09 and we'll be talking about that as well. 15:11 Life insurance, talk with your life insurance agent. 15:14 There's a way with whole life and universal 15:17 where you might be able to borrow against this thing 15:19 and pull cash out of the cash component 15:21 to put down on your new home. 15:24 Personal item sales, 15:25 I mean, garage sale, 15:27 it might be garage sale time, it might be yard sale time. 15:31 Again, it's time to start, every single dollar counts. 15:35 And there's the IRA 15:36 you can withdraw up to $10,000 in a lifetime 15:39 from your IRA penalty-free, 15:42 you still are liable for taxes 15:44 but as long as this goes towards a purchase, 15:46 you're able to do that. 15:47 And then 401K, now the IRA and 401K 15:51 just because you have this money, 15:55 I'm not a proponent of being able to do that 15:58 just because you can, 16:00 I like the fact that these are retirement, 16:02 this is for your rainy day fund, 16:03 when you get to, 16:05 you're not working for the Golden Arches 16:06 in your golden years. 16:08 Right, right. 16:09 So I'm not a proponent of using your IRA or 401K fund, 16:13 but this could be a viable place, 16:15 but again make sure you do replenish it, 16:18 this is your retirement fund. 16:20 Trust me, down the line I've seen many individuals 16:23 over the age of 40, 50 16:25 when they start looking back and saying, 16:26 "Well, I wish I had not done that. 16:28 Right. 16:29 I've seen more individuals 16:31 who were upset 16:32 that they had tapped into that retirement fund 16:34 than had not tapped into it. 16:35 So those are places 16:37 where you can get some cash out. 16:38 I think it's about deferring gratification. 16:42 Because you know, we're a microwave society. 16:44 I want it now, I want it, you know, the way I want it, 16:47 and what you're saying is 16:50 tap into some of these resources 16:53 but have some patience. 16:54 Right, exactly. 16:56 If you have to build it yourself 16:59 or save it yourself, 17:00 which you gave some excellent ways 17:02 to save some money, 17:04 I think, you know, you have to look 17:08 at deferring gratification. 17:09 I can't have it now but I will be able to have it. 17:13 God willing, I will be able to have it. 17:16 And so the next tip is locating a good agent. 17:20 Now, I feel very strongly about this 17:23 because any financial counselor 17:26 that you have, anything, whether it be, 17:29 or any counselor, whether it be an attorney, 17:32 CPA, or a real estate agent, 17:35 financial adviser especially, 17:37 they should be willing to educate you. 17:40 They should be willing to 17:42 not only be so concerned with commission 17:45 that they're actually sitting down 17:46 and talking to you. 17:48 Edwin Davis, he does my taxes for me, 17:52 he's a CPA, he's an enrolled agent. 17:56 He's not a tax attorney. 17:57 There's only three individuals 17:58 that can represent you in court for taxes, 18:00 CPA, enrolled agents, and a tax attorney 18:02 but he's two of those, 18:03 and I'll tell you Edwin Davis, 18:05 he, every single time I've ever left his office, 18:08 I've been more educated than when I came in. 18:11 And I'm not an expert on taxes, 18:13 I know a little bit about taxes 18:14 but he is the expert. 18:15 He's written books, he can write manuals on taxes 18:18 and he educates it to you. 18:19 We should be expecting more from individuals 18:22 that we're paying services from 18:24 to make sure that they're educating us 18:27 and talking to us 18:28 and making sure that we're not just signing things 18:30 without any knowledge or understanding of that, 18:32 so as you look for a good agent, 18:34 do they rush? 18:36 Are they able to be flexible with your time schedule? 18:39 Do they have a concern about your livelihood 18:42 and making sure that they can give you 18:44 all the information in a timely fashion? 18:49 All these things and more. 18:51 Are they upfront with the way that they are, 18:54 are they an exclusive agent? 18:56 Actually you getting an exclusive buying agent 18:58 where they're not having any dual agency, 19:00 and they're representing buyers and sellers and whatnot. 19:02 With conflicts of interests. 19:04 Exactly. That's actually legal. 19:06 You can be a dual agent 19:08 and represent the buyer and the seller 19:10 as long as you disclose it. 19:12 You can do that 19:13 but at the same time do you want that? 19:16 Right, exactly. 19:17 You should not want that. Right. 19:18 And they should be upfront with it. 19:21 You just want to make sure they are ethical. 19:23 They have fair business practice. 19:25 So you want to talk to them. 19:26 This is a big decision 19:28 and they're very excited 19:29 to make sure they can get a commission off of you, 19:32 but don't let that excitement allow them to push you 19:36 into doing something that you don't want to do. 19:38 So searching for the right neighborhood, 19:41 we have to make sure we're looking 19:42 I mean, looking for signs, 19:44 I mean, literally looking for signs. 19:46 If there's a lot of for-sale signs in that neighborhood 19:49 that might be a sign that people are selling. 19:52 That might be a sign 19:53 that you know, why is everybody moving away 19:55 from this neighborhood. 19:56 Right. 19:57 The beautiful part about it 19:59 now is that as we're searching for various neighborhoods, 20:01 there are websites like zillow.com 20:03 zillow.com 20:06 where you can go online 20:07 and see exactly what the houses are selling for 20:10 in the various neighborhoods. 20:12 So you can do some comparable pricing 20:14 all on the internet. 20:15 `Ten, fifteen years ago you can never do that. 20:18 So if there are homes that are selling for at 20:22 or even in rare cases above their appraisal prices, 20:27 then that means it's a hot commodity market, 20:29 that means that this neighborhood is selling 20:31 but if there are homes that are selling for deep discounts, 20:34 below even their appraisal prices 20:37 then we ought to be very cautious about that. 20:39 So we just got to do a little circular tour 20:42 around the neighborhoods. 20:43 Look at the schools, 20:45 the agent, the real estate agent 20:46 is not allowed to tell you 20:48 about the quality of the schools 20:50 because it's viewed as leading, 20:52 it's viewed as basically discriminatory 20:56 and giving you information 20:58 that they don't have all the information 21:00 so any information 21:02 that a real estate agent provides 21:04 that particular client, 21:05 they must be able to make sure it is well documented 21:07 against all the information that's available out there, 21:09 not on this particular school 21:11 so you can't ask your real estate agent 21:12 on certain things, 21:14 so there are certain things 21:15 you got to do your own research about. 21:17 I was looking for an apartment 21:18 and the real estate lady 21:21 was showing me through this apartment 21:23 and I asked her, 21:24 "What's the crime rate around here?" 21:27 And she couldn't tell me. 21:28 Can't tell you, no. 21:30 I had no idea that that was, that kind of information. 21:31 It would be violation. 21:32 Really? Yeah, it would be a violation. 21:34 It's viewed as leading and leading 21:37 and so for her to give that assessment of crime mean 21:41 that she has to be able to give that assessment 21:43 of every neighborhood. 21:45 And there were some real estate agents 21:46 that will say, "Oh, this is a high crime area 21:49 and I don't think you ought to live here," right? 21:52 Maybe I was giving that information 21:53 because I don't want you to live here 21:55 in this particular neighborhood, 21:57 so that's a violation. 21:58 And so I mean, those are the rules 21:59 so there are certain things that we have to make sure 22:01 that we do our own research on, 22:03 especially in a neighborhood 22:05 and a couple of other quick tips is 22:07 when we're making the offer, 22:09 can you find at least three other homes 22:11 that have sold in that neighborhood 22:13 and see what they sold for. 22:15 You want to get some comparable sales. 22:17 You don't want a lowball 22:18 because you don't want to get the seller to be disgruntled 22:21 and next, you know, they'll take the sale 22:22 off the table for you 22:24 and sell it to somebody else who is not lowballing them. 22:27 When you enter into a contract, 22:28 make sure you get an attorney to read the contract. 22:31 And if nothing else, make sure you read that fine print. 22:35 Again, Operation Hope again, they have, they'll allow, 22:39 they'll read the various contracts 22:40 and make sure that the cost from a financial perspective 22:44 is within your budget 22:45 of what you can actually afford. 22:46 So I always encourage individuals to get 22:48 two, three, four or five different sets of eyes 22:50 to doing that 22:52 and then make sure you get an inspection. 22:54 The inspections should be, 22:55 they may cost you $300 up to maybe $800 to $1,000 23:00 depending upon the size of the home 23:02 but the inspection is crucial 23:03 because that individual is unbiased 23:07 and they are objective 23:09 and they will be able to look at that piece of property 23:11 and tell you all the things 23:12 and give you the best of settlements 23:13 just like when you buy a car, 23:16 you get a mechanic, an independent mechanic, 23:18 to look under the hood and say, 23:19 "Hey, let me check out this vehicle 23:21 before I purchase it." 23:22 And then lastly when you're closing the deal, 23:25 you just want to make sure, you're going to get that, 23:28 you'll receive a final HUD settle statement 23:30 from your lender that lists all the charges 23:32 you can expect to pay at closing. 23:34 You want to read that over. 23:36 You want to be caught, you want to take it slow 23:38 but not too slow where you're going to lose the deal, 23:41 but you want to be very deliberate 23:43 at going about doing these things 23:45 so I mean this is from looking to closing process 23:49 that I would love for people to just to just 23:51 and if they needed additional help, 23:52 they have any questions then, my mother always said, 23:55 "When in doubt, do without." 23:57 So don't move forward unless you fully understand 24:01 because for most individuals 24:02 it's going to be the largest purchase of your life. 24:05 That's right. That's right. 24:07 You shouldn't move forward 24:09 without consulting with the Lord. 24:12 To find out 24:13 is this one of promise or the flesh. 24:15 Exactly. This is you've said before. 24:17 Because you can be moving on your own, 24:20 you want that so badly that you just like 24:23 I got to have it, I got to have it. 24:25 But does the Lord want you to have it now? 24:27 He's not going to withhold any good thing from you. 24:30 So if you can't handle it He knows what's, 24:33 He knows the end from the beginning. 24:35 So He knows if, you know, things happen, 24:37 people get sick, they can't handle things. 24:39 He knows what's going to happen. 24:41 So ask God, should I get this home? 24:45 Yeah, and so I know 24:47 that there've been a lot of predatory lending, 24:49 people are still cautious about that in this environment 24:53 and these times it's probably a little bit more 24:55 where they're not lending enough if anything 24:57 but there is still a lot of many cases 24:59 of predatory lending out there, 25:00 so I actually have 13 tips 25:02 that I want to read off for the viewers 25:06 so they can essentially just know 25:08 that these are some things they could look out for, okay. 25:11 So tip number one, 25:13 read everything carefully before you sign. 25:17 Tip number two, 25:18 hire a qualified real estate attorney 25:21 to help you understand the documents 25:23 that you're about to sign. 25:25 Tip number three, 25:26 do not sign any blank documents. 25:30 Number four, 25:32 hire an adviser or a free financial coach 25:35 to help you calculate how much you can actually afford. 25:38 Number five, 25:40 do not purchase property for another party. 25:44 Number six, be honest about your employment status. 25:48 Number seven, do not exaggerate your assets. 25:52 Number eight, report all of your debts. 25:55 Number nine, 25:57 by all means do not alter your tax returns. 26:01 Number 10, tell the truth about all gifts and financial help. 26:07 Number 11, be truthful about credit difficulties. 26:11 Number 12, do not provide any false documentation. 26:17 And number 13, do not mislead. 26:20 I think these are things that, and I emphasize the tax returns 26:25 because many people did that, 26:27 may people alter their tax returns 26:28 so they can say, 26:30 you know, they had income loans 26:32 where people all they had do to is, 26:34 their stated income 26:35 and just say what their income is 26:37 and they get a loan. 26:38 So people would alter their tax returns 26:40 so they can get that income level 26:41 and get that loan. 26:43 So all of these things 26:44 at the end of the day it's just about being honest, 26:46 but I think the Word talks a lot about 26:48 being honest, right. 26:50 Absolutely. 26:51 Thou shall not lie is one of the biggest commandments 26:53 that we can have. 26:54 So all these things together I think will be all right. 26:56 Wonderful, wonderful. 26:58 Hey, you have a takeaway for us? 26:59 I sure do have a takeaway 27:01 and it was a good two days and I'll have something to say. 27:04 Thanks for the info. 27:05 All right. 27:12 You're thinking about buying a home? 27:14 You must ask yourself this question: 27:16 Is this born of the promise or born of the flesh? 27:19 Being a homeowner takes much responsibility, 27:21 so we need not take this decision lightly. 27:23 God wants us to receive all His blessings 27:25 but we must not insert our schedule 27:28 over the one He has for us. 27:29 We have seen what it looks like 27:31 to purchase homes in the worldly way. 27:33 We crashed the economy. 27:34 How about we try God's way? 27:36 With consultation, wisdom, and patience 27:39 we will uplift the economy and everyone in it. 27:41 At Dollars and Sense, 27:43 we want you to receive the blessing of homeownership. 27:45 Send us an e-mail at dollarsandsense@3ABN.org, 27:48 and ask us your questions 27:50 on the Dare to Dream Network Facebook page. 27:52 Until next time, be the change 27:54 and remember the purpose of life 27:56 is a life of purpose. 27:57 Signing out. |
Revised 2021-06-16