Are you ready to buy a home?

I walked into Starbucks like I do every Wednesday and ordered my iced mocha and whatever coffee cake (nonfat) looked tempting enough. I found my favorite chair sat back and I read chapter three of the "Automatic Millionaire Homeowner" by David Bach. What I took away from this chapter is that you have to be automatic about everything. David suggests that you automatically deposit money into your savings account.

If you do not do it automatically, something will come up and you will not save. If you think you cannot save, you can use the worksheet on page 80 and figure out how many incedental items you are purchasing every month and decide which one you can give up in order to save for your home.

For those of you out there that say, I can save money with out doing it automatically, David says think of Murphy's Law(I LOVE IT!) "Whatever can happen will happen"



There is a section in this chapter that mentions that you don't need a big down payment to apply for a loan and mentions 80/20 or 90/10 loans. That part is a little out dated. Those loans are not currently available in today's market. However, we still have the FHA loan which requires 3.5% down payment and you can get the seller to pay up to 6% of your closing costs.

There is a little time left to purchase and get the $8,000.00 first time homebuyer tax credit. If you purchase your home, and put $8,000.00 down you will get that money back to either use for fixing up your home, or you can put it back into savings.