Shownotes:
People ask David all the time: “Hey, this is my situation. Can I buy a home?” Well, when Jacob from Dallas, TX, asked David for help, his situation looked pretty tough. But, with only $2,200 out-of-pocket, he was able to stop renting and purchase a home! Listen to his wild and informative story.
Here are some topics from today’s conversation:
- Curbing spending and saving money
- Getting approved
- Finding the best neighborhood for your price range
- Having the right team makes the impossible possible
Episode Highlights:
[01:44] Take a Hard Look at What You Have
When Jacob came to David, he was paying $1550 a month in rent with about $1000 in monthly bills plus some other expenses. After taking a hard look at their finances, Jacob knew that they needed to start saving money instead of living paycheck to paycheck. He didn’t have a Roth IRA, retirement fund, or anything that he could pull from, but he and his wife were able to save about $2100 over 3 months and were able to put that towards a home purchase. This took significant efforts to downsize their budget, balance student loans and spending, and save as much as they could.
[20:08] Your Realtor Is Your Guide
Jacob and his wife were able to get approved for rates and an amount that they felt comfortable with, allowing them to find a home in a nice neighborhood that fit their needs. Their realtor, Cole, was able to guide them to the right neighborhood and work with them through the whole process which made all the difference in their search. He was patient with them as they took him to homes they found and he gave them advice on the best and most affordable neighborhoods that would have what they were looking for. Ultimately, when they came to their home, they had a feeling that it was the house they were going to buy. And they were right! They were able to close with only $2200 and, although the interest rate was very high, they have the opportunity to refinance later on.
[30:59] It All Starts With a Plan
Jacob’s biggest word of advice? Things aren’t as difficult as they might seem. While he thought that he would not be able to afford a home, he’s now living in his own home. Despite not coming from a lot of money and not knowing his way around finances, he was still able to make it possible. All it takes is a little discipline to save some money for a down payment and then you replace your biggest monthly payment (your RENT) with a mortgage. And, partnering up with a unicorn team made it happen all the faster. What a story!