| With interest rates being at an all-time low, I can | | | | ask her if she had a budget, did they keep track of |
| understand the urgency for people wanting to | | | | their monthly expense but I didn't want to impose on |
| purchase a home. But I caution the first-time home | | | | their privacy. However, I explained to her that I was |
| buyer to learn how to budget their money before | | | | a Financial Literacy Coach and worked specifically with |
| buying a new home. | | | | people to help them customize a budget. She |
| I happen to live in a state with one of the highest | | | | promised to get in touch with me after the |
| foreclosure rates in the country. I was so shock to | | | | transaction but I never heard from her again. I often |
| learn that many people lose their homes within the | | | | wonder if things would have worked out differently |
| first couple of years. I wondered why so soon. Sure | | | | seeing as if they had utilized a budget before buying |
| the economy is not the best and people are getting | | | | their home. |
| laid-off and having hardships, but some people are | | | | I share with my clients some advice I heard from |
| simply not prepared for the unforeseen problems and | | | | one of my financial mentors, Suze Orman. Before |
| expenses that comes with owning their first-home. | | | | buying a home, put aside the difference of your rent |
| When I received a call from a friend telling me about | | | | from what will be your mortgage payment, taxes, |
| a property less than a mile from my home that was | | | | and insurance for six months. If you can manage |
| in the process of being foreclosed on, I quickly made | | | | without going into the money or finding it to be a |
| arrangements with their agent to view the property. | | | | burden on your lifestyle then you just might be |
| It was a nice single family residence with some minor | | | | ready. One last thing is to update your budget with |
| wear and tear. The family that was losing the home | | | | the category "repairs". Take 1% of your purchase |
| was a basic middle-class family. I had less than three | | | | price, divide that by 12. If you can budget this |
| weeks to close the deal since the home was to be | | | | monthly cost into a separate savings account you |
| sold on the courthouse steps the following month. | | | | are ready to become a first-time homeowner. |
| Needless to say I bought the home and had instant | | | | If you want to learn more about this topic or others, |
| equity in the property. Before the closing, I sat down | | | | please visit our website so that you can listen to our |
| with the previous owners and asked why they were | | | | weekly Internet Talk Show that airs live every |
| losing their home. The wife said to me in a matter of | | | | Sunday night at 9:00pm EST. Don't worry if you miss |
| fact way, "Well we started falling behind on some | | | | the show, you can always listen to the archive |
| bills, and soon things got out of control." I wanted to | | | | version at your leisure. |