Dollars and Sense

Responsible Home Ownership Pt. 2

Three Angels Broadcasting Network

Program transcript

Participants: Yvonne Lewis (Host), Ryan Mack


Series Code: DAS

Program Code: DAS000010A

00:01 What is money for?
00:03 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.
00:49 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
02:52 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,
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 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.
05:02 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.
05:53 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,
07:45 we talked about that in the first episode,
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
08:56 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
09:38 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.
10:39 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, 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
12:39 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,
13:58 "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
15:52 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
17:59 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
19:30 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.
19:39 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
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
20:32 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.
21:33 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
21:42 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
22:00 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
22:51 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
23:39 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.
24:40 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
26:49 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
27:26 but we must not insert our schedule
27:28 over the one He has for us.
27:30 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,
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 2017-07-31