Build Wealth by Buying Your First Home

Today I wanted to go over some advice self-made millionaire David Bach has for millennials about owning a home.

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Last week, CNBC ran an article quoting self-made millionaire, David Bach, explaining that not purchasing a home is the biggest mistake millennials are making, because buying real estate is an escalator to wealth.

Bach went on to explain that if millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.

The average homeowner to this day is 38 times wealthier than a renter. According to Bach, as a renter, you can easily spend $500,000 or more on rent over the years, and in the end, wind up right where you started, owning nothing. Or you can buy a house, spend the same amount paying down a mortgage, and wind up owning your own home free and clear.

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If you want to gain wealth, you need to quit renting.

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So who is David Bach He’s a self-made millionaire who has written nine consecutive New York Times Best Sellers. His book, The Automatic Millionaire, spent 31 weeks on the New York Times Best Sellers List. He is also one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Jorurnal, Businessweek, and USA Today best sellers list. Additionally, he has been a contributor to NBC’s Today Show, appearing more than 100 times, and has been on many other news networks as well.

So, the bottom line is, whenever a well-respected millionaire gives investment advice, people are usually eager to hear it. This millionaire gives simple advice; if you don’t live in your own home, it’s time to buy one.

If you or anyone you know is thinking of buying or selling a home, or if you have any other real estate-related questions, please don’t hesitate to give me a call. I would be happy to help!

The Perception of FICO Scores in Qualifying for a Home Loan

Many buyers are misinformed about what it takes to buy a home. You don’t need a FICO score over 780, nor do you need 20% down. Here’s what you do need.

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If you’re thinking about buying a home but you’re concerned that your credit score might not be high enough, don’t automatically disqualify yourself. Over half of all approved loans have a FICO score under 750. According to KCM reports, countless studies have shown that potential home buyers and current homeowners have an inflated view of what is really required to qualify for a mortgage in today’s market.

One such study at the Wharton School of Business at the University of Pennsylvania revealed many millennials had not yet considered buying a home because they didn’t believe they could qualify for a mortgage. There is a significant part of the population that doesn’t think they will be approved, so they don’t even try. The study also quoted the Fannie Mae CEO as saying, “I do think there is a sense among buyers that credit may not be available, especially to those with lower scores.” However, before assuming you don’t qualify for a mortgage, know your options. You don’t need a 750 score or a 20% down payment to qualify for a loan, but what do you need?

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We can make your dreams of homeownership a reality.

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The average FICO score for all closed loans last year was 724, with 50% of them being under 750. Many buyers believe they need at least a 780 to qualify, but that’s simply not true. Here’s the bottom line: if owning a home has always been a dream of yours and you are ready and willing to buy, let’s find out if you can qualify for a loan. We can make your dreams a reality sooner than you thought.

If you have any other questions about buying or selling real estate in the Temecula Valley area, give me a call or send me an email. I'd be happy to help you!