Get Your House in Order First

Guest: Hunter Dehn

Hunter Dehn Realty

Delayed Gratification - can I put off some things that I want, but don’t need now, to be able to get something better that I’ll need later?

Get your house in order first…get out of debt as fast as possible. Less debt is better than more debt! Watch out for short term, high-interest debt - credit cards can charge outrageous interest rates, be careful!

Hunter - the car you drive doesn’t make you as cool as you think it does!

Renting vs. Buying. You want to rent for the shortest amount of time possible. Rent in order to save money. If you’re paying as much in rent as you would for a home, that’s not a good financial plan! 

When you go get a loan, they’re looking at two things:

1. Debt to income ratio. How much money do you have left after taxes vs. how much debt are you carrying at the time (your existing debt obligations)
2. Have some equity, some money to put down

Hunter - financial advice - try to have 6 months worth of expenses in savings, just in case

What should I be looking for in a home?

Location is the most important decision - try to be as close to the things that you’re going to be doing all the time, within reason. Some people are handy and can add value to a new home that needs a little work, others need to purchase a move-in ready home. Know what your skill set is. Handy, but don’t know how to do things - find a YouTube video - but be careful of DYI plumbing and electrical work!

Homes in Texas - moved from pier and beam foundations to slab foundations. Cast iron pipes in a slab foundation that crack and break over time can cost a lot of money to repair. Get a plumber to check the pipes and also look out for potential foundation problems.

Real Estate - you want a LOCAL expert in the housing market. A realtor can help you with the paperwork and legal issues no matter where they are located, but only a local expert understands the local housing market. Don’t be penny wise and pound foolish (don’t save a “little” that will end up costing you a lot more!).

Hunter - find a good, knowledgeable lender. Start by getting your credit score in order. Develop a good credit history - don’t let your credit amount get above 50% of your credit limit - and make sure you are paying off your credit card monthly. Lenders want to see that you’re a good investment - a responsible borrower who makes their payments on time.