Have you ever seen a fat personal trainer? Would you pay a fat personal trainer to help you lose weight? Or would you seek a "physically fit" trainer to help you tone and sculpt your body, and a nutritionist to design a healthy meal plan for you?


My point is that if you are in the market as a 1st time home buyer or an investor then I strongly advise you to hire your own personal team of experts that will work together to achieve "your goal"! For example, see definitions below:


Financial Planner defined:(the Quarterback) a practicing professional who prepares financial plans for people covering specific areas such as risk management, budget planning, education planning, retirement planning, tax planning, estate planning and insurance planning.

Realtor defined: a person who acts as an agent for the sale and purchase of buildings and/or land.

Mortgage Loan Officer defined: a person who helps a borrower acquire mortgage loans from a bank or other lending institution.

Real Estate Attorney Defined: Legal professionals who specialize in real estate transactions.

I understand the purpose and motivation of the California Association of Realtor's launching their new "down payment gap assistance" online tool BUT personally I'm over it! All these programs are a racket and don't do anything but collect data for boiler rooms to call on! Again, I understand the purpose and intent and if you are in a position to benefit, Go For It and Get That Government Money! Otherwise, if you are of the other 80% that it didn't help then I firmly believe there needs to be a new set of systems and procedures installed into our government that requires the following:

STEP 1. A required amount of education that you must attend online or in class (ie-continuing credits) that maps out the process from beginning to end on how to obtain a home loan. For example, how to beef up your credit, what lenders look for and any fees and expenses associated to obtaining a home loan. Less education required if you are an experienced home buyer and seller. Upon completion you will receive a certificate and a credit incentive to complete next program. If you cannot pass the course with a minimum score of 70% then YOU DON'T NEED TO OWN A HOME!

STEP 2. A required instructional video series that defines the concept of financial planning and the necessary steps to take before you even start saving for a 20% down payment. For example, how to save 6 months worth of fixed expenses (emergency fund, some say 3 months) in a short term liquid account, how to obtain life insurance, how to obtain long term disability insurance and how to pay for long term care. Upon completion you will receive a certificate and a credit incentive that allows you to register for your next course. If you are not able to complete these steps then YOU DON'T NEED TO OWN A HOME!

STEP 3. A required course that defines the "time and value of money" and how to effectively and comfortably save for a 20% down payment. I feel down payment assistance programs should be very limited and for special circumstances such as (ie-special needs, medical hardships, VA). Once you have shown the ability to save, you now have earned the right to talk to a loan officer and start structuring your loan. If you cannot save for a 20% down payment then YOU DON'T NEED TO BUY A HOME! Start a savings plan.

STEP 4. Once you have been approved for a loan then you complete a course that explains the "role of a Realtor" and  the "role of a real estate attorney". Upon completion of this four step program you are now educated, qualified and confident in hiring your own team of advisers in route to buying a home.

I know this sounds harsh to most of you but stop and think for a moment how much stronger our overall economy would be 10 years from now if people were better educated on how to make the largest purchase in their life. There would be more of an appreciation of home ownership and less greed in home ownership. There would be less mortgage delinquencies and foreclosures. Investments such as REIT's and mortgage backed securities would pack a lot more punch and all related jobs would be that much more secure.

Instead, we will continue to run on our hamster wheel and end up right where we were back in 2005 to 2009! Do not repeat the same mistakes! If you are living month to month with minimal job security then YOU DON'T NEED TO BUY A HOME! Again I'm not knocking DAP programs, I would just rather grow our economy fundamentally without any smoke and mirrors!

What do you think???