| The Simple Man's Logic. | | | | not my take home pay!b. My Fico credit score: |
| When I started looking into real estate, I was | | | | My credit score is considered low at the time. It |
| somewhat confused. I gathered all my important | | | | was 580, but it was enough to get 100% doc. |
| papers and marched to the first Real Estate | | | | DOC means document of loan papers. This credit |
| Agent in town. Boy was that a big mistake! That | | | | score allow me not to fork over down payment |
| agent took me through hoops and I literally | | | | to the loan company before I even start! The |
| jumped over rope! I got frustrated and mad! I | | | | higher your score is the less you would have to |
| called the agent up and said, " I no longer need | | | | pay in the end for your mortgage. I am talking |
| your services". I had some experience since my | | | | about the principal and interest of your mortgage |
| father was in the military and he careless for the | | | | payment. You want to be fewer than 5 to 6% |
| military quarters so he bought a house every | | | | and not 8 to 10%.c. You need at least $2,000 to |
| time the military said go! Eventually, this was a | | | | $4,000 in the bank. This is for your closing cost. |
| hobby of my father, and being a daddy's little girl | | | | But it doesn't mean that you are going to use it! |
| I got the itch. | | | | This money needs to be resting or breathing in |
| Well, what I did was I started doing my own | | | | the bank. DO NOT TOUCH!d. PRE-QUALIFED |
| research in real estate. I asked everyone that I | | | | LETTER! You are now at the final section where |
| know about his or her experience in real estate. I | | | | you can TAKE ACTION! Using your total |
| called real estate investors who were friends of | | | | household income, and your credit score you can |
| the family, local judges, and attorneys in the area. | | | | Run and not walk to your nearest loan company |
| What I found I compiled and started to implement | | | | to start the process of getting your letter. If you |
| what I learn from the Real Estate Experts. I was | | | | do not know what your credit score or what is |
| determined not be made of a poo poo head by | | | | on your credit report, the Federal Government |
| any Real Estate Agent that wanted me to do all | | | | allows you to get a one time "look see" at your |
| the work and he/she takes all the money! | | | | report! Here is the website! this website will ask |
| I committed to make a real estate list, its sort of | | | | your question only you would know, like your last |
| a " To do" list that works! Here are my four "To | | | | residents, or what bank your car is finance etc... |
| do" of what I needed. You can modify it to meet | | | | LET'S GO BACK! You income! Just in case you |
| your need, but the concept will always be the | | | | don't know and I am not stepping on your |
| same! | | | | intelligent, you need your pay stubs, 1040's, proof |
| 1. Know Your Income! This is where you gather all | | | | of residents, proof of extra income like SSI, |
| the income in your household or your income. At | | | | military retirement and so forth! |
| the time is making only $43,000 as a Special | | | | Now here is where you Hit the ground running! |
| Education Teacher. Not bad earning, but that was | | | | You are now armed with your papers and |
| it, an EARNING! I was tired of punching the clock! | | | | confident in knowledge! There is a KICKER!! If |
| 2. Know your Housing Market! I live in Hampton, | | | | your Fico credit score is 500 to 600, don't go to |
| Virginia. The cost of living doesn't not equal to the | | | | your local bank!! They will turn you down! Make |
| real estate market. For example, in Jackson, | | | | you feel worthless and possibly will not give you a |
| Mississippi I could qualify for a house of $200,000 | | | | reference! Where to start! Let's try "Lending |
| based on my income and more, but in Hampton, | | | | Tree". Yes! I said Lending Tree; you want to get |
| Virginia I can only afford $122, 000 to $130,000 | | | | that pre-qualified paper so you can start |
| price range. I would be pushing it, if I would say, | | | | negotiating or as I would say, "talk up" on a deal! |
| $150,000. The housing market is astonishing! And | | | | After you have your pre-qualified paper, go to |
| we are only talking about a standard 3bedroom | | | | your local mortgage bank that is for the people |
| 2bathroom. This brings me to the third step. Your | | | | and not their money! (If you have good credit, go |
| debit to income ratio. That's how much you owe | | | | to any bank you choose, just know that you |
| and home much you take in. | | | | might get better resource else where. You want |
| 3. Debit to Income Ratio! Where to start, if you | | | | more then one option.) |
| have questions, you may email me at Please put | | | | You have your pre-qualified paper; you can either |
| into the subject line "3rd step" real estate! This | | | | go to a Real Estate Agent or a For Sale by |
| would allow me to filter out the junk mail and | | | | Owner! If you don't have your armor or a |
| immediately answer your questions. I can better | | | | weapon, how are you going to win the BATTLE? |
| explain it by giving you an example. Mine!a. My | | | | Not only that, can you see the War! The answer |
| teacher's pay: A$ 43,000.00: This is my annual and | | | | to it my friend is "NO! |