I learned the hard way that when it comes to purchasing a home, you need a whole lot more than a dream. The lessons I learned 10 years ago when I was positioned to purchase a home but didn't, are lessons that I've been able to apply to pretty much all of the goals I set going forward from there.
Ten years ago I was renting a home in one of Washington DC's up and coming neighborhoods, near the now uber trendy U street corridor in the northwest quadrant and within walking distance of Howard University where I was a professor. I loved the neighborhood and the character and charm that comes with a large historic row house. I relished living in the Ledroit Park community where, in the 30's, 40's and 50's, the negro intelligentsia and professors who preceded me lived and thrived.
I had often dreamed of purchasing a home but I didn't really have anything besides a dream mindset. What's a dream mindset you might ask? Well, a dream mindset is when we think about our goal and imagine our goal and admire others who have achieved the goal, but for some reason we don't move beyond that state of mind. I had no idea how expensive my preoccupation with dreaming would be.
About six months into renting the home I started to receive notices that the home was going into foreclosure and letters came in droves from agents trying to reach me to become my agent. I was so ignorant and had so much fear about the housing market and home purchase process that I became anxious and believed that somehow I could be held liable for the home being in foreclosure. My solution, I decided to move out.
However, before I could implement my hasty plan, the owner, a real estate investor, actually tried to help me purchase the home. He put me in touch with a mortgage broker and decided that he would offer me the chance to purchase the home for a measly $128,000. Yes, you read that right, he offered me a purchase price that was pennies in comparison to the homes on the same block. However, I didn't know that because I didn't know anything about purchasing a home. I didn't know that all I had to do was look up the tax records for the homes on my block and find out what they were worth. I had no idea that all I had to do was look up the nearest homes for sale within a one mile radius and I would have known that homes in the same condition and same size as the one I was renting, were selling for more than $400,000, more than triple the price he offered me.
I was a highly educated woman, yet, from my reactionary behavior you sure couldn't tell.
It wasn't that I didn't make enough money to afford the home, it was the mindset I was bringing to the experience. A mindset that had locked me into a perpetual state of dreaming of achieving.
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