The Holly Walther Team: Fun Fact Friday – Home Ownership

Holly: Hey guys, happy Friday. It’s Holly and, a little stuffed Daisy. She’s a little bit easier to work with sometimes when we’re doing these videos. But we are here with this week’s fun fact Friday, and let’s talk home ownership. I so often get phone calls from first time home buyers that have no idea where to start this process. So today I want to give you three little quick, quick facts on some things that maybe you need to do if home ownership is on your bucket list for 2021.

So first of all, get organized. Set up a folder on your computer. Let’s really look at your finances and let’s get organized. In that folder, you want 2 years W-2s, you want 60 days of your bank statements. You want 30 days of your pay stubs. I want to know who is your HR contact. Put a copy of your driver’s license in there. When you’re looking at that checkout, that expiration date. If it’s expiring this year, let’s go ahead and put that on your radar to get that updated, because we are going to need a current driver’s license. Those are just some quick bullet points.

So some other things that you really want to think about and consider is what does your credit look like, and what makes up your credit? If you don’t have a credit card, or if you have one that’s maxed out, those are things that we want to look at. So two great credit tips. One, if you have some established credit cards and you are carrying revolving debt, and we challenge you to get those balances down to 20 to 30% of the credit line, what does that mean? If it’s a credit card and it has a hundred thousand, a hundred thousand, that would be great. A thousand dollars credit limit. Don’t charge more than $200 to $300 a month on that card. And if possible, keep those things paid off.

Now, if you don’t have any credit, we need to get you some credit established to start working on that credit score. So maybe in the beginning, you see if a family member will put you on one of their good accounts as an authorized user. That’s a quick hint to get a credit score. Then we want you to get your own credit card. Use it for gas and groceries. Keep that percentages of a balanced credit limit in mind, but use it on a monthly basis. And let’s try to pay it off every month if possible, so we can show some positive credit utilization.

And last but not least, open a savings account. You know, if your goal is home ownership and you’re not saving now, then that’s something that we really want to talk about and focus on. Because that is, let’s be honest. Home ownership is expensive. If you’re renting, when the plumbing starts leaking, what do you do? You call the landlord. Well, when you become a home owner, those are going to be your responsibility. So start saving today. Start looking at your budget, really get realistic and honest with yourself about what you can afford and then give us a call so we can help get you on the right track. That is this week’s fun fact Friday. We’ll see you next week, and have a great weekend.