Buy a House With Team SchuCo
Who did you say your favorite football team was? How about your team's ownership, do they have good spending habits? Do they make sound investment decisions regarding their team's future or do they throw money around just to end up over budget..?

Therefore, I pose the same question to you..

Is your debt under control or is it hindering you from being positioned properly and prepared to buy that perfect home when you see it?

Are you a controlled spender or do you spend up to every last penny you earn just to RUN OUT OF MONTH AT THE END OF YOUR MONEY!?

Buy a House With Team SchuCo

If you have consumer debt readily available to you then it's imperative that you control your spending habits. Take it from me and my experiences on and off the field. The first chunk of money I received from playing ball I blew on a brand new car, clothes, shoes, cocktail parties and a home that I never ended up living in and lost. All a waste! Hence over the past decade or so I've been hell bent on being debt free! If I don't have cash to pay for it then it ain't happening, plain and simple! And it feels great..!

Yesterday I gave a few tips on how to overcome the obstacles of being a first time home buyer in La Jolla. Here are some strong suggestions that will help you regardless of what situation you're in.

Most importantly, debt should be used for large purchases only! If you can't pay cash for it (ie-car, jewelry, vacation) then that may be an excuse for debt. In a perfect world you want DEBT THAT CREATES EQUITY! (ie-home ownership, mortgage, investment property)

Remember when acquiring debt:

  • Your payment of interest increases the actual cost of obtaining that item.
  • Repayment of principal (monthly payments) will limit your available funds for other things.
Therefore, debt such as credit cards & auto loans should be avoided if you're looking to buy a home! Yes, mortgage interest is tax deductible whereas consumer debt isn't. So, try and limit yourself to only use consumer debt for consolidating bills to one payment or to delay a payment until the billing due date.


RULE OF THUMB

  1. Consumer Debt Should Not Exceed 20% Of Your Net Income
  2. Housing Costs Should Not Exceed 28% Of Monthly Gross Income
  3. Total Debt Should Not Exceed 36% Of  Gross Monthly Income

Hope this information helps! If you would like someone to coach you and help get you what you want, I'm just a phone call or text away 858-263-5767.

As your full service REALTOR® specializing in the beautiful city of San Diego, California, it is my personal goal to provide you with exceptional service. Here is where you will find articles on my personal experiences and Real Estate resources. My local expertise backed by one of the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the Real Estate market a definitive mark of stability, strength, quality and innovation.
I “LOVE” my career! Hire me to help you navigate through the home buying or home selling process.
CONTACT USFollow Us on Twitter Follow Us on Pinterest Like Us on Facebook