Money…based on my observations over the years I have learned that it pays dividends when considering large purchases like cars, homes, education and the like, to get your facts and financing together first. Nothing can be worse than purchasing large ticket items while you are carried away on an overwhelming whirlwind of emotion, which often accompanies these big-ticket purchases. The best way to minimize purchasing mistakes and errors in judgement is to get your financing together first. Let's take a quick look at a few of these purchases and how they can be best approached.

Buying a home-if you are planning on buying or refinancing a home take the time to learn about the details about various loan programs on the market by talking to several lenders including both banks and mortgage brokers. There are a wide variety of conventional and governmental home loan programs (including FHA and VA loans) that may be more tailored to your short, medium and long range needs.

One of the best things you can do is ask a bank for a free HUD booklet, which explains the fundamentals of home loans and how they impact you. Learn the "financial speak” and don't sign ANYTHING unless you (really) know what you are doing. Always be sure to talk to at least three loan officers and take notes, read loan literature, get pre-qualified for financing and understand exactly what you are doing BEFORE you look at homes. Doing so makes you a smarter buyer and less likely to make mistakes.

Buying a car-it doesn't make any sense to me to buy a new car and lose thousands of dollars within minutes by driving it off the car lot. It makes more financial sense to buy a nice pre-owned car at a far less price… of course, you want to have it professionally inspected by a third party (licensed mechanic) before you buy it. And the key is the time of year you buy the car. In my opinion the best time of the year to buy a car is January or February of each New Year. Here's why: A used car may be selling for $10,0000.00 on December 31 of a given year but on January 1 (the next day/the new year) it will not be worth as much as the day before because of the calendar change (.) Used cars tend to sell slower during this period of the year and your negotiating strength is highest. I like to think of this strategy as being "prudent” not "cheap”.

Buying education-colleges are in the business of selling education. They have classes to fill and representatives to help steer students into those classes. Many people who go to school seem to "follow the follower” by chasing trends. Remember the "rush” to get a computer programming degree during the 80's? Everybody ran off to be a programmer only to find out (after

they graduated) that much of the employment demand had been filled by the glut of computer graduates. Trends are like that… by the time you hear about a "hot job market” and run off to get educated for it, the market is filled. So here's the key to selecting an education: What do you love to do? What would you do for free everyday? That's probably a good starting point for selecting an education. America is a giant monopoly board and areas like business; law and medicine are good choices for education too. No matter what education you pursue you should (once again) get your financing together first. Request information from the schools of interest to you. Meet with their financial aid departments; find out about student loans and state and federal grants. Many communities have work incentive programs that offer education and training for unemployed or displaced workers, call your local Bureau of Employment and ask if they have sources for assistance.

If you have a disability, you may want to contact your local Bureau of Vocational Rehabilitation Services (BVR) they have many programs that may be able to assist you or fund your education. Whether you are a parent of a child who is planning on college or an adult planning on going to school, dig in and research all your financial options (Don't forget the Internet!) And remember: Financing first!

Copyright © 2005 James W. Hart, IV All Rights reserved

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