You Need All Three To Buy A Home

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

There are potential buyers who want to purchase a home.  Questioning them, I find they have good credit and a good income, so what is missing? 

They have no extra funds saved, no substantial down payment, for a rainy day.

Let's talk about savings and my suggestion.

Start a 'house account.'  Set up a bank account, and name it something that will be encouraging, like "Our Own Home," 'The No-More Renting Fund.'  or  ' Landlord Freedom.''

There is one main rule.  This account only goes one-way deposit!  Never touch this money other than for your future home.  What goes into this account stays in!  Here are a few suggestions to get started.

When you are online or out shopping and ready to buy, ask if you need it.  Is it a necessity?  If not, deposit the amount you would have spent in your "no more renting" fund.  Each time you go out to eat, think about the cost, and what if you banked the savings of that gourmet meal and chose something less pricey? 

 

 

Keep a unique penny bank in the house.  Maybe one for

each person or make it a total family collection.  All loose change goes in there.  Now think about occasions Birthdays,  anniversaries, and holidays.  Get the family  and kids involved—no more big presents.

When you are about to spend some money for that occasion, and your family asks what you want for your special day, tell them about your 'dream house fund' .  Get your relatives on board.  Most parents love this kind of gifting.  Have your checks and deposit personalized with 'Dream House Account.'

It has been so rewarding when buyers have taken this advice.

Each family member should be thinking about the savings.  Get them involved with looking forward to a private bedroom, a playroom, a backyard, a movie room, less commute time, a home office, a gourmet kitchen, a workshop, or a garage.  Go ahead and make that list of all the things you can have when it's your private home.

You need all three 

Income

Credit Score

Downpayment

 

Thinking about buying a home

 Call Margaret Rome

Posted by

Margaret Rome
HomeRome Realty
Broker/Owner/Realtor®

Baltimore, Maryland


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Comments (19)

Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Margaret -  the one way nature of the account is crucial.  Too many people save and then dip into it.  That does not work.

Aug 13, 2022 03:43 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Very good tips. It takes discipline to save money, but if the motivation is there, it can be done!

Aug 13, 2022 04:41 AM
Margaret Rome Baltimore 410-530-2400

Kat,  Sometimes it needs to be taught or at least pointed out orsuggested  by a caring Realtor

Aug 13, 2022 05:52 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Margaret... such an important message, especially for right now. So many prospective first-time buyers are paying enormous rents now and finding it harder than ever to save money. And from what I read, with inflation where it is many people are using credit cards more than ever.

Aug 13, 2022 04:57 AM
Margaret Rome Baltimore 410-530-2400

Nina, High rent pays the landlord mortgage. Pretty easy to make that point.  
With calculator app open. Ask: “You’ve been paying how much a month and for how many years? “

Aug 13, 2022 05:46 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great information.  Thanks for sharing and have a wonderful day! bill

Aug 13, 2022 05:27 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I feel bad for those that don't save for themselves.  One of the first rules I learned was to pay myself first.

Aug 13, 2022 05:36 AM
Margaret Rome Baltimore 410-530-2400

Brian England You learned a very important rule first. You must have had good teachers. 

Aug 13, 2022 05:39 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Margaret. Like the one-way concept! Many should adopt it so they can make the move. Enjoy your day.

Aug 13, 2022 05:53 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Margaret,

Excellent advice. When the whole family is involved it means more to everyone! Right now it is harder with inflation hitting everyone in the pocket. 

Aug 13, 2022 05:54 AM
Margaret Rome Baltimore 410-530-2400

Dorie, this one needs the entire family to be involved. It is exciting to watch buyers when making this plan work. I encourage them to keep track of what they didn't need or gave up for the house.

Aug 13, 2022 09:05 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Wayne Martin, The one-way account works for some serious buyers.

Aug 13, 2022 06:35 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Margaret, I remember many years ago, I would give saving all my change and put ten dollar bill in a big bottle jar and determine to buy a house one year out of college, mission accomplish! 

Aug 13, 2022 08:56 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Will Hamm Wonderful success! And you made it happen one year out of college! This would make a good stand-alone post and could encourage others. 

Aug 13, 2022 09:07 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Margaret I have done this quite a bit with first time home buyers over the years.  Some do extremely well and are ready to buy in no time at all.  Others, well, it takes a bit but they get there!  I've also suggested putting all their 'Starbucks' money in the  'house' bank too - as that ads up every single day at $5 a cup! And lots of first timers like their coffee.....but they start thinking more about the future and what all that money can do for them!

Aug 13, 2022 10:49 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Anna Banana Kruchten CRS, Phoenix Broker

You are so right that some do exceptionally well. Those are the buyers that we love to help.  When they think about everything going into that one-way house bank (from Starbucks, loose change,  refunds, and dollar bills found in clothes you forgot about), they see the possibility of home ownership. 

Aug 13, 2022 12:08 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
St. George Utah Area Residential Sales Agent

An out of sight, out of mind savings plan works for me, Margaret. Goals can be met by those who earnestly want the dream of home ownership and go after it with passion!

Aug 13, 2022 12:16 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Wanda Kubat-Nerdin - Wanda Can! Love this comment: "Goals can be met by those who earnestly want the dream of home ownership and go after it with passion!"

Aug 13, 2022 12:46 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Margaret I talk to several Borrowers a week, and you are right about the lack of savings.  Even the ones with very good income many times lack savings.

Aug 13, 2022 01:55 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

George Souto  I am seeing that same thing, good income, high credit s core but no savings  

 

Aug 13, 2022 02:26 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Margaret,
I don't think a lot of people are ever taught money management as they were growing up. In a weird way, I consider myself fortunate to have grown up relatively poor. I had to work for my spending money, and it made me think about every penny I spent. 

As a young adult, I remember asking myself two questions if I was trying to save for something but was tempted to buy something: 
Do I NEED it? 
Will it help me make more money?

Aug 14, 2022 10:49 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Carol Williams, These are two perfect questions when spending.

''Do I NEED it?   Will it help me make more money?''

Aug 14, 2022 01:07 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Margaret Rome Baltimore 410-530-2400 - I like the idea of a "dream house fund." What a clever idea! When everyone in the family pitches in and does their part, the finish line gets closer all the time!

Aug 15, 2022 03:09 PM