Today, I want to do a personal post because my housing arrangements have improved in the last couple of months and I think it could change the same way for you!
I had the opportunity to attend a class given by Steve Harney few months ago in Dallas and he covered two points which caused me to think about my own situation.
Here are the two points that he covered:
1. Significant Equity
He went to explained that 37% of the homeowners believe they have less than 20% equity in their home. In reality, 69% have more than 20% equity.”
Can it be possible that people have that much equity and just don’t know about it?
Steve mentioned that the agents are offering a “PEAR report” (Professional Equity Analysis Report). I decided to invite one of the agents to know how much my house is actually worth. To my surprise, I was part of that 69% and didn’t know it. It’s embarrassing to say that since I am in the business and should know that!
2. FICO Score Requirements
Steve also explained, based on what we see on television commercials, many people believe they need an 800 FICO Score to get a mortgage. Here is a graph showing the real requirements in 2015.
I am always checking my credit to make sure that there is no identity theft. However, I was not really paying attention to my score. This was definitely a second “ah ha moment” to see that I could qualify for a larger mortgage.
How this information changed my life?
I was living in a two bedrooms town house. Not enough space to have people over without re-arranging furniture when we had visitors. We always wished we could have a house with a 3rd bedroom. After learning how much equity we had in the house, we decided that it was time to go and find the house of our dreams!
Homeownership is very special for us! My husband and I are first generation Hispanic Immigrants and it was a part of our American dream! This is the first home that my husband bought in this country and it was wonderful to see him going throughout the process. Within few months of attending that class, we sold our townhouse, found a new construction house with 3 bedrooms and more than enough space to have people over in a resort like community. As you are reading this blog, we are moving into our brand new home.
If you are a homeowner, invite a real estate professional to let you know the amount of equity you have in your house. Then determine if you can finally move into the house of your dreams!