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OWNING YOUR OWN HOME--NOT WHAT YOU THINK

By
Real Estate Agent with Reliant Realty in Nashville, TN TN License# 00232013

 

OWNING YOUR OWN HOME—NOT WHAT YOU THINK

 

 

 

 

 

In 1983, I was a fledgling mortgage loan officer in Franklin, Kentucky, working with a newly licensed realty agent.  We had a young couple that was looking for their first home.  I was also doing business with two reputable home builders, and new homes started out around $69,900. I had prequalified them for about $75,000, so Mary Ann and the bride were like two little girls in a dress shop.

 

 

Mary Ann called me one night, and said “Fred, you have got to talk Steve into buying this house—the wife loves it.  Now, I didn’t lose my hair from trying to talk people into things when they we capable of making their own decisions.  I had a limited acquaintance with Steve, and knew he did not need, nor would he welcome my telling him what to do.  Ladies: that is what God put you on this earth to do—tell a man what to do.  I expressed that sentiment to Mary Ann and his wife; but I agreed to call him; and before I could say hello, Steve was informing me that I was not going to talk him into buying that house!  He meant it, and I believed him.

 

 

 

What he said next, is the wisest thing I ever heard a 24 year old man say: I want to own my own home; but I do not want it to own me.”

 

 

 I have quoted Steve Turner more than anyone I know, except Jesus and my dad.  I wish I could get more young people to think about what he said.  If I could, they would live more restful, secure, and happy lives.  Now, I have not forgotten that my chosen field of endeavor is real estate sales.  I am a REALTOR® by choice, and I find great delight in helping people attain their dreams.

 

 

 

OWNING YOUR OWN HOME is not the hard part—but it is not what you think.  There are mistakes made that can control your destiny.  Remember the old saying, “Be careful what you ask for—you may get it.”

 

Little girls want “babies” and later learn “it’s not what you think.”  Young men want to grow up and be out on their own, and learn it’s not what you think.”  We have all had second thought, wished we had known, and regretted not listening to someone who had traveled the road before us.  Well, I have been a frequent traveler of the road you are on.  It is not a bad road, but it does have curves and ditches along the way.  Let’s mention a few:

 

  1. Taking on un-necessary debt for things we truly do not need.

  2. Not saving money every month—no excuses.

  3. Not having a written budget—put pencil to paper.

  4. Having separate bank accounts rather than managing money jointly.

  5. Wasting nickels and dimes—thus losing dollars and more dollars.

  6. Being selfish in the marriage (or in not being married): commitment?

  7. Not planning a future together, but buying a house together???

  8. Buying more house than is necessary.

  9. Buying amenities rather than space and value.

  10. Not being on the same page about where you want to live, and what is of joint importance.  Selfishness should not have your address.

 

 

 

Some may think I am meddling, but I am not.  My children will tell you that I say what I think needs to be said, but then keep my nose out of their business.

 

 

 

One last suggestion: Consider buying a less expensive home and finance it with a fifteen year mortgage.  You can do it by resisting the temptation to buy other less important items such as fancy car wheels, more shoes & clothes than you think you need.  Practice leaving checks and bank card at home, and see how much wealth you gain by applying scissors to credit cards. 

 

 

 

You may ask what makes me an expert on these matters.  Wisdom is the child of Mistakes and Experience.  I have made many mistakes, and gained much experience.  One other thing—I care about your success and happiness.  That comes at no charge.  You have nothing to lose in considering the truth of Steve Turner's statement, and that is my wish for you.  

 

I want to own my own home; but I do not want it to own me.” PLEASE THINK ABOUT IT.

 

 

 

--Fred

 

Posted by

Fred Cope, Reliant Realty, Nashville, TN -- (615) 587-3500 -- http://www.LookingForHomes.org --30 years experience in real estate and finance

Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hey Fred - sopme great learning points in there that I am definitely going to share with my new and first time home buyers. Thank you for sharing.

Jan 20, 2014 11:08 PM
Tom White
Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN
Franklin Homes Realty LLC, Franklin TN

Fred, your last paragraph could be primer for how to survive financially in the 21st century! Really well thought out.

Jan 20, 2014 11:26 PM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

You took on the role of a real estate consultant and not a real estate salsperson. Excellent move and it will earn you a lot of respect and a better career

Jan 21, 2014 09:47 AM
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Jeff, thank you.  I spent 25 years as a mortgage loan officer & counselor, and I think I learned mich from my clients, my processors, realty agents, real estate attorneys, and my underwriters.  I sat at the feet of some of the best.  I built relationships with FHA and VA Office personnel.  I treated them with respect and was rewarded with every consideration of whatever my clients issues.  I had the priviledge to escort a 77 year old WWII Silver Star recipient (full-blooded Chickasaw Indian) to the VA on an appeal of the decline of his application by an underwriter based on her being "uncomfortable with the loan."

The VA Reviewer heard our presentation, approved the loan, and told my client that he was fortunate to find someone who believed in him & fought for him.  The man had fought for me in a much more dangerous arena.  I am probably more proud of that approval than any other.

Yes, I learned much from those I came in contact with; and I welcome your use or benefit in anyway that aids your service for them.

Jan 21, 2014 10:25 AM
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Tom, thank you for your remarks.  I appreciate them.  We have got to educate homebuyers on the rewards for using fifteen year mortgages.  The benefits over a 30 year mortgage are real and factual.  The savings on interest alone will provide a nice nest egg for a family.  If a 25 year old uses a 15 yr mortgage, he would own his home free & clear when he was 40.  Imagine how much saving he could acrue if he continues setting aside the amount of the monthly house payment s each month until he retires.  He could be debt free anf in position to help his children go to college, start a business, etc.  The alternative is sending all that interest to the bank--making them richer.

We are in the mess we find ourselves because we invest more in instant self-gratification that we we do in our family's future.  That bunch in Washington is fattening the pig for slaughter, and we set here with an apple in our mouth and a dumb look on our faces.

Jan 21, 2014 11:01 AM
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Jimmy, thank you.  I am reminded of a commedian that played a drunk (sort of like Otis on Andy Griffith):  He stagged in with a blank look on his face, and said "I didn't do nothing--I was just walking down the street."  That describes too many of us--we stagger through life doing nothing, when we could help one another be successful.  We look forward to a Social Security check like it is going to put us on easy street.  We have to become "watchmen" giving warning.  As REALTOR®, we have an opportunity to touch lives for the better.  We cannot be bossy, nosey, or meddlesome; but we have to make good decisions, and help others do the same.

I believe running an amortization schedule for first time home buyers has been one of the best services I have provided.  I believe teaching clients the "Rule of 72" is a potential life-changing service.  I am working on  blogs about each of these.  These little things serve their need more than a "house warming gift" that cost $100.  This on cost a little time, so maybe both services & gift would be nice.

 

Jan 21, 2014 11:19 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I always tell my buyer clients that even if they are quailfied for a larger mortgage amount they should buy a home where they are comfortable with the monthly payments.

Jan 21, 2014 08:20 PM
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Gita, thank you.  I agree that just because someone qualifies for $XXXXXXX does not mean they are wise to do so.  When I was a mortgage loan officer, I found that whatever I told the buyers and their agents was the qualifying amount, that became the starting point.  Invariably, the agent would call and say, "Fred, we found a house for $2,000 more than you said they qualified for--can you work it out?"

Gita, that was not an occassional happening--it was near certain that would happen.  When the Lender has to turn around and say, "No, they do not qualify", he is then the bad guy!

My solution was to qualify on base pay only.  I held the other figure close to the vest.  I also learned that generally it was the agent who pursued that highest figure--not the buyers.  God is my witness.

Beyond that, I am greatly concerned that stretching maximum purchase prices, then using 30 year mortgages puts buyers in jeopardy.  We have seen the concequences of such over-exposure when politician meddle in mortgage finance.  In 25 years of mortgage lending, I had only two loans go to foreclosure before Dodd & Frank turned the housing industry into a "slush fund" for their cronies.  Being out of the business since 2007, I only have partial information.  I know of three or four other loans that were under water; but so many people were forced to do things that screwed up their credit, and then moved out, etc.  I continue to pray those folks were able to resolve their issues.  The three mentioned were loans on the edge when they closed.  One in particular, I was told "If the lender accepts the loan, it is no skin off your nose!"  No, but it is a scar on my soul.  Some of those people spent two years getting in position to buy their first homes.  Now, they start over--more dejected and less confident of their future.

I cannot force anyone to do the prudent thing, but I can lay options and possibile consequences on the table.  I must, and I do.  I hope other REALTORS® are mindful of the power they may have over unsoficicated, poorly educated, and overly targeted by preditors

Jan 22, 2014 04:11 AM