A Knight’s Guide to Buying your 1st Home

War…. That is the simplest way to describe it.  For there is no greater action one can take to solidify their security, than buying their first home.  However there are many enemies out there who do not want you to succeed in this endeavor, for they are the ones who profit most from your debt enslavement.  Your landlord doesn’t want you to stop paying HIS bills.  Your employer doesn’t want you to have stability, but rather be hopeless dependent on your paycheck as your only asset.  That is because this lack of tangible assets is what keeps people in poverty.   

As a knight you have already made the choice.  You’ve chosen freedom over bondage, hard work over get quick rich schemes.  You have chosen to live on less now, that you may secure a future for you and your future generations.  But before we go in the trenches, it’s important to first know what you are up against as a first time home buyer.  

The Knights Planning 

In order to wage this war effectively, you will need to do some strategic planning before charging into battle. So before you can go any further in the home buying process, first decide what exactly you’re going for.  This will vary depending on what stage you are in your life. 

 

Types of Castles

 Watch tower 1-2 bedroom’s home, purposely transitional, possible long-term asset  

Keep – A Fixer Upper that will require work so make it livable.

Castle – Home that doesn’t require work or requires minor work.  This house type will meet all of your needs.  Perfect for familes or those who don’t have time, energy, or resources to fix up a house. 

Fortress – full on Dream Home consisting of a muti-bedroom home complete with any amenities me you desire such as acherage, a hot tub, multi car garage, marble countertops, etc.  

Buying a watch tower may be an excellent idea of your looking to save on your rent bill.  Then you can take those savings and put that money down on a fortress in the future.  The thing to keep in mind is the knights ultimate goal is to have a paid off home with zero outstanding debt.  Actual Real-estate investing will be covered in a different section.  

1. Gather your Allies 

In order to purchase a home you will need to ally with several different people.  You will need mortgage lender, a real-estate agent, and bank.  Here is what each of these individuals do. 

Mortgage Lender:  A mortgage lender is a company, group, or program that will send the actual cash to the home owner.   

The Real-estate Agent:  The agent is an individual who will be responsible researching homes on your behalf, keeping track of paperwork, and submitting an offer.  This Individual will be paid a commission fee as part of what are known as closing costs.   

A bank:  you will need an established bank account with a bank.  The bank will serve as a means to verify income and financial statements.   

While winning the closing bid on a home is a challenge, putting an offer in on one is relatively simple.  Provide you follow the steps listed below. 

2.  Get your Pre-approval letter.   

A pre-approval letter is an official legally binding document that states you have a party willing to lend you money for the home.  In order to get a pre-approval you will need to pick out a mortgage lender and file an application with them.  A mortgage lender will typically ask for the following:  ·         

Two years worth of W2s  

Two years worth of tax returns 

One month pay stubs for 

2 months bank statements(all pages) 

Copies of driver’s licenses (for verification purposes only) 

Most recent statement of any Stock or Bond assets such as a work sponsdered 401k, IRA, Stock trading account, etc.  

 (Sorry that hefty balance in your digital crypto currency wallet won’t count.  At least not yet)

Once you submit these documents, your mortgage lender will look at the data provided and offer you establish a maximum amount of money they will lend you.  This will be created as a document called a “Pre- Approval”.  It is absolutely CRITICAL that this step happen first. No real estate agent, online email inquiry, no bank, or home owner will take you seriously without it.  Think of your pre approval as a royal decree from your king, and he’s given you permission to go to war.  

3. Find an Agent 

Chances are you already know an agent in your social circle.  If you have at least 100 friends on social media, one of them is bound to be an agent or know of one.  Once you’ve selected an started making offers, agent they may require you to sign a document agreeing to finish the process with them.  This ensures that you don’t make a side deal behind the agent’s back.  But as a outstanding Knight, you would never think of such a thing.    

The Knights Charge 

You are calm, cool, and collected.   You’re not frantically searching for homes anymore.  Your mind has been made up, and you know exactly what type of castle you will be attempting to siege.  You have allies are gathered around you, awaiting your command.  You give the signal, your banner man sounds the horn, and together you all charge head-on into combat.  As you round ride over a hill your eyes come into contact with an unbelievable sight.  You see Knights from all manner of kingdoms riding out.  Each with their own allies and each with just as much intensity as you have.  You see banners from out of state, and even some from out of country.  

You see your target, the home of your dreams.  You signal your men to ride harder and faster as you close in on the target.   

Your mortgage lender and agent ride ahead to get the first offer in.  And then suddenly they are cut off.  Another agent, from your same kingdom is also riding vigorously on behalf of her master.  You watch in angry as their agent is riding faster than yours.  You call over a messenger.  You tell him to catch up with your agent and lender, making sure they increase the offer you’re going to put down.  From a great distance you see your lender give you the confirmation that he received the message. 

Confident you charge ahead, only to see a messenger from the competitor also riding up to their agent.  They too have increased their offer, but you do not know how much.  You decide to stay steadfast with the original increase and gallop towards your promised land.   You can see the castle owner standing outside, waiting to accept an offer.   

It’s neck and neck.  Both agent are now standing on the ***footpegs of the saddle.  Froth is escaping from each horse’s mouth as they are pushed beyond their limit.   Both agents tug the reins and break their stallions to a halt.  Both dismount a charge for the land owner. 

As each agent is out of breath, bent over, trying to spit their offers out.  The Castle owner with a look of horror and bewilderment on his face, calls out “What are you doing here!”  “the competitors agent speaks before yours does.  “We have come to make an offer. BREATHING HEAVILY   I Guarn…  SIGH  Guarantee we can beat the second offer by at least 20,000!” 

The Castle owner now has a look of disgust on his face.  “I AM THE NEW OWNER!”  He spewed.  “How could this be!”  Asks your agent.  “This Castle was only on the market for a day! “  “I sent my offer via raven.  And owner accepted my offer 12 hours ago.  “   

You and the competing knight have both caught up with your agents.  There you stand, looking at what was thought to be your castle.  You were so certain of victory.  You look to the side and see a fresh batch of knights entering the field of battle.  The competing agent ad lenders are begging for an audience with the new owner, trying to make a deal.   

Depression hits you as you see how unbelievably unattainable your goal was.  Your lower head your and let out a long sigh.  Your allies, gathered around take a moment as well.  So take one last look at the castle of your dreams as you turn your back to it.  Your team awaits your next order. 

Never Give Up 

According Redfin the average home buyer puts in offers on at least 20 different homes.   Ultimately your desired market will dictate conditions. So it’s important to not get discouraged.  As a knight you represent the leader of this offensive.  Your home buying team, (and spouse) are looking at YOU for the motivation to continue. They are looking to you to plan the next charge.  As we said earlier, buying a house IS a WAR.  So it’s important that we never give up, no matter how many houses we fail to win.   

Pending Offer 

You raise your head and yell to your banner men to continue the charge, to the next castle.  You completely ignore your depressed motivation, and charge for your next destination.   This time you won’t be ignored!     

You see another castle off in the distance, and you quickly close in on it.  This castle has a single care taker managing it.  You slow your horse to a trot and call out to the caretaker.  “Is this castle still available?”  You asked.  “Why yes it is.”  Says the caretaker.  “While there are other offers on it, the owner has not decided on any yet.  Would you like to place in an offer as well?”   

This news is encouraging to you.  You begin to calmly unsaddle your horse and begin to look around.  Your team begins to dismount as well; you don’t experience the mad rush that you previously did.  And judging by the demeanor of the caretaker, the owner is in no rush to close either.   

Scheduling a showing 

In order to view a house, you will need the assistance of your real estate agent.  They will be able coordinate a time a date that works for both you and the homeowner.  Here is a list of things that you should look for on a home visit. 

10 things to watch out for the first time you view a home

• ❏ Check the floors. One way to the tell that the plumbing might not be up to par? …
• ❏ Notice cracks in the wall.
• ❏ Pay attention to fresh paint.
• ❏ Look for water in the basement.
• ❏ Test the windows.
• ❏ Assess the roof.
• ❏ Note the trees outside.
• ❏ Eyeball electrical and plumbing.

  

Closing on the house 

You return to your castle, nervously awaiting a raven.  You are hoping that this Raven carries a message that can change your family’s destiny.  That you can enter the next stage of your battle strategy, that you can finally get the victory that you’re so longingly desired for.  The message that says  our offer has been accepted.

At last the raven has come.  You reach up and you nervously undo the message.  You remember the anxiety and frustration with your last failure.  As you unravel the message you drop it to the ground.  You curse as you bend over to retrieve it.  Just then your Agent comes barging through front door of your base.  “Did you Receive the RAVEN! “  She says completed elated.  You freeze in mid motion.  Has it happened, your ask yourself.  But before you can continue to reach for the scroll your agent yells “THEY ACCEPTED!  WE WON THE CASTLE!!!!!!” 

You don’t believe her at first, so you quickly retrieve the scroll and read the message yourself.  The declaration is bold black ink, and the letter even contains the castle owner’s official seal.  You are now official the castle owner.   

Word quickly spreads through your encampment.  Your family congratulates you; your friends admire you, and even imagine the maestros will sing songs about you;  about your vision, sacrifice, and your victory.  The hard part is over; you’ve won your castle.  But something doesn’t quite seem right.  

As you look outside your camp’s window you see storm clouds beginning to brew.  As you stare down the storm, you are quickly reminded the truth.  You have not truly won your castle quite yet.  You have merely won the chance to own it.  For you will face many trials and tribulations in the years to come.  Forces such as economy, layoffs, sickness, and famine will all come for your castle.  But you are confident in your ability to defend it. Defend it until it is fully paid off, and then you will have the easy task of simply maintaining it.  But tonight, is not the night for fear of the unknown, for tonight is the night of celebration.