The Real Estate Show

Radio Show Notes 07/22/24 Monday:

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Credit, Down Payment, Income: Your Real Estate Readiness Checklist

By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.

Welcome to The Real Estate Show – South Florida’s #1 Real Estate Radio Show and America’s longest-running daily radio show about real estate.

Hello, listeners! I'm Eric Willner, the Voice of Real Estate and founder of The Automatic Landlord System for Owning Cash Flowing Real Estate Profitably and Hassle-Free. It's Monday, and you know what that means – it’s time for our "Monday On A Mission" edition of The Real Estate Show.

Today, we're continuing our series on why NOW is the time to buy real estate with our theme: Real Estate Success: Step 2 - Assess Your Readiness to Buy in The Step-by-Step Guide to Buying Real Estate – Set Clear Goals.

Did you know that the average homeowner’s net worth is substantially higher than that of a renter? Homeownership is a critical step towards financial security and independence. But how do you know if you're ready to buy? That’s what we’re diving into today.

Real Estate Success: Step 2 - Assess Your Readiness to Buy in The Step-by-Step Guide to Buying Real Estate – Set Clear Goals

Knowing how real estate works is essential to your success. Before we delve deeper, let me remind you about our special FREE workshops this week:

1. Tuesday 8pm: Path To Home Ownership Introduction – Free Online. Text PATH to 561-861-2366.
2. Wednesday night 8:30pm: Financial Edge University Overview – Free Online. Text EDGE to 561-861-2366.

Real estate requires skill, strategy, adaptability, and an unwavering determination to cross the finish line successfully. The road to financial victory may not be a straight path, but it's certainly an exhilarating one!

So, why is assessing your readiness to buy so crucial? Here are the three main areas lenders focus on when determining your readiness to purchase a home: Credit, Down Payment, and Income.

1. Credit Score: Your credit score is a critical factor in determining your eligibility for a mortgage and the interest rate you'll receive.
2. Down Payment: Having a sufficient down payment can significantly impact your mortgage terms and monthly payments.
3. Income: A stable and adequate income ensures you can manage your mortgage payments along with other financial responsibilities.

Let's delve deeper into each of these areas.

Credit Score

Why It's Important: Your credit score is a numerical representation of your creditworthiness. It affects your ability to secure a mortgage and influences the interest rate you’ll pay over the life of the loan.

Key Points:

• Higher Scores Mean Better Rates: A higher credit score can lower your interest rate, saving you thousands of dollars over the life of your mortgage.
• Improve Your Score: Pay down debt, avoid opening new credit accounts, and check your credit report for errors.
• Target Score: Aim for a score of 620 or higher. A score of 740 and above is considered excellent and will give you the best rates.

Actionable Steps:

1. Check Your Credit Report: Regularly review your credit report to ensure there are no errors that could negatively impact your score.
2. Pay Bills on Time: Timely payments are crucial. Set up reminders or automatic payments to avoid late fees.
3. Reduce Debt: Pay down credit card balances and avoid taking on new debt.

Call to Action: Text “EDGE” to 561-861-2366 for more tips on improving your credit score and preparing for homeownership.

Down Payment

Why It's Important: A down payment is the initial upfront portion of the total purchase price. It reduces the amount you need to borrow and can lower your monthly mortgage payments.

Key Points:

• Typical Amounts: Conventional loans typically require a down payment of 3-20% of the home’s purchase price.
• Impact on Mortgage: A larger down payment can result in lower monthly payments and may eliminate the need for private mortgage insurance (PMI).
• Savings Goal: Start saving early and consistently. Look into state and local programs that offer down payment assistance.

Actionable Steps:

1. Set a Savings Goal: Determine how much you need to save and set a timeline.
2. Create a Budget: Cut unnecessary expenses and allocate funds towards your down payment savings.
3. Automate Savings: Set up automatic transfers to your savings account to make saving easier.

Call to Action: Remember to text “EDGE” to 561-861-2366 for more strategies on building your down payment savings.

Income

Why It's Important: Your income determines how much you can afford to borrow and your ability to make consistent mortgage payments.

Key Points:

• Debt-to-Income Ratio: Lenders look at your debt-to-income (DTI) ratio to assess your ability to manage monthly payments. Aim for a DTI ratio of 36% or lower.
• Stable Employment: Steady employment and income stability are crucial. Lenders prefer borrowers with a history of stable employment.
• Additional Income: Consider all sources of income, including bonuses, overtime, and side gigs.

Actionable Steps:

1. Calculate Your DTI: Add up your monthly debt payments and divide by your gross monthly income. Aim for a lower ratio to improve your chances of getting approved.
2. Increase Income: Look for ways to increase your income, such as taking on extra work or negotiating a raise.
3. Reduce Debt: Pay off existing debts to lower your DTI ratio.

Sponsor Break: Today’s show and better credit are brought to you by www.TimeToFixMyCredit.com. Remember to text “EDGE” to 561-861-2366 for more information on building your financial edge and unlocking real estate success through good credit!

Understanding these three main areas – Credit, Down Payment, and Income – is essential for assessing your readiness to buy a home. Each factor plays a vital role in your ability to secure a mortgage and manage your financial responsibilities as a homeowner.

Conclusion

In summary, assessing your readiness to buy is a multifaceted process. It involves understanding your financial situation, improving your credit score, saving for a down payment, maintaining an emergency fund, and staying informed about the real estate market.

By focusing on these areas, you can set yourself up for success in your real estate journey. Real estate is a powerful wealth-building tool, and with the right preparation, you can achieve financial freedom and stability.

Upcoming Workshops: Don't forget our special FREE workshops this week:

1. Tuesday 8pm: Path To Home Ownership Introduction – Free Online. Text PATH to 561-861-2366.
2. Wednesday night 8:30pm: Financial Edge University Overview – Free Online. Text EDGE to 561-861-2366.

Join these sessions to gain more insights and strategies to succeed in real estate.

As we wrap up today’s show, remember that tomorrow is our "Tuesday Tools, Tips, and Techniques" edition of The Real Estate Show. You won’t want to miss it – we’ll be sharing valuable resources and insights to help you profit and succeed in the real estate world.

Thank you for tuning in today. Remember, don't just listen – use our show to get started in real estate investing. Tune in every weekday to The Real Estate Show, a literal seminar in every episode. And don’t forget to attend our free online workshops.

Have a fantastic day, and we’ll see you tomorrow on The Real Estate Show!

Also, you can listen to the entire 30 minute broadcast of any day’s edition of The Real Estate Show by clicking on the audio link on that days summary post. You can also watch the Facebook Live video at www.facebook.com/TheRealEstateShow.

Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.

Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.

Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow 

Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.

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