Journey to Success
“See the Vision…Create Your Path”
by
Book Cover & Preview Text
FOUR USES OF CASH
Unexpected Expenses and Emergencies
• Job Loss, Unplanned Medical Bill, Home Repair, Auto Repair
Specific Short-term Savings Goals
• Vacation, Wedding, New Car
Everyday Spending
• Groceries, Utilities, Rent, Entertainment, Insurance, Gas, Other Debts
Sources of Investment
• Real Estate, Stocks, Bonds, Cash
Budget and Savings
Smart Strategies
• Smart Spending
• Debt Consolidation
• Payoff Strategies (Snowball Method)
• Emergency Fund ($1,000 minimum)
• Have a Checking and Savings Account
• Know Uses of Cash
• Catch Up on Past Due Accounts
• Monitor Your Credit
Credit Score Factors
• History of on-time payments
• Credit utilization
• Length of credit history
• Recent searches for credit (Inquiries)
• Types of credit used
The Pre-Approval Process
Pre-qualification: This is simply just an estimate of how much someone can afford to spend on a home.
Pre-approval: This is more valuable than a pre-qualification and often required when submitting an offer to purchase. The lender has looked at the potential buyer’s credit and verified the documentation to approve a specific loan amount. This pre-approval is valid for 60-90 days. After this timeframe, the potential buyer will need to get pre-approved again.
Needed Documents
· Verify Income (i.e., recent paystub)
Part-time Jobs: Income can only be used if you have been employed for at least 2 years
· Verify Assets (i.e., bank statements, retirement account statements)
· Pull All Credit Reports (lender uses buyer’s middle score)
· Other Documentation (i.e., driver’s license, identification card, social security number)
Formats
Book Details
About the Book
Success is when a person is happy with their results, not when someone else is happy with their results.
Is your current mindset ready to build wealth and make better sound financial decisions? Are you looking to own a home? Do you have your finances in order? Maybe you feel semi-prepared, not prepared at all, or simply have no clue where to start with your financial literacy and homebuying education journey. This workbook assists individuals in identifying where their mindset is today and helps them develop smart goals and a clearer vision of where they are aiming to go on their journey. This workbook has tried and tested methods, reliable knowledge, and sound guidance. So, roll up your sleeves and join the journey to seeing the vision and creating your path.
About the Author
Erica Odom is the owner and founder of Odom Investments & Property Management. She is a social worker, success coach, a licensed life agent, college instructor, a landlord, a real estate investor, and a project manager. She has a master’s degree in social work, and an associate degree in criminal justice. Here is her story: In 2006, she purchased her first property, a duplex home for $125,000. This was before the housing market crash of 2008. Erica was an inexperienced 19-year-old young adult with a decent credit score and consistent employment history. Her mortgage broker approved her for a loan, and she purchased her duplex. Her loan was an 80/20 loan, which consisted of 80% of the loan being an ARM (Adjustable-Rate Mortgage) loan, and 20% of the loan being a balloon payment. She rented out half of her duplex and lived in the other half for five years. Throughout those years, she watched her property depreciate. She got to the point that her adjustable ARM loan was scheduled to adjust. She reached out to her mortgage company for help but was told there was nothing they could do because her mortgage loan was current, and she would need to be in default on the loan to get assistance. Erica could not get a bank to approve her for the refinancing of her loans, because her debt-to-income ratio was high. She made the decision to stop making her mortgage payments. She put the house up for sale as a short sale, in April of 2013. It sold for $15,000 cash to a real estate investor. In December of 2017, Erica was able to rebuild her credit and build up her savings from the loss she had taken in 2013 and continues to grow in her real estate journey.