About The Episode
In 2024, the average age of the first time home buyer hit a record high at 36 years old. In this episode, hosts Cristina and Addison discuss how you can prepare for your first big purchase alongside Rori from Addition Financial.
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First Steps
5:57
Addison Asks Question 1: So let's say someone wants to buy a car or a home next year. What is the first step that they should take?
Rori: Check your credit and set your budget. I think a lot of people go into buying their first car, for example. They find the nicest Mercedes and they want that car, but they don't think in the long run can I afford these payments? Can I afford the maintenance, the insurance on this vehicle? So just I always advise give yourself extra wiggle room, make smarter money moves now.
Advice From Our Guest
6:22
Cristina asks Question 2: So you talked about being prepared for these big purchases because we're all going to have one. How do you do that? Like, what kind of advice do you give your members?
Rori: Absolutely. I tell everyone, just think in the future, thank yourself later, especially with, you know, car payments. The more you put down, the lower your car payment is. So if you want that nicer car, you got to start thinking in advance. And when it comes to savings, I tell everybody stop focusing on the number that you're trying to reach more focused on making it a habit. Because if I'm losing $50 every paycheck, that's just a habit. I don't even realize I'm missing it. But that goes to my future purchase, and it helps me in the long run. That could add up so quickly.
Addison Follows Up: I think it's like taking the approach of like, you want to be happy now or happy later because you're gonna have to either, you know, it's like you cannot save now and, you know, go spending, but then you're going to pay for it later. So I think you got to kind of pick your poison.
Homebuying for Beginners
7:17
Addison Asks Question 3: So let's say someone is buying their first home. You know, this is a big step. It's a little different from buying a vehicle. You know, it's a lot more that goes into it. So what is the first thing someone should do when they're thinking about buying a home?
Rori: I advise them, think of the hidden costs that you don't see up front like your homeowner's insurance. You know, little things around the house and whatnot. When you're getting that first home. It's not just the first mortgage. You've also got to take into accountability, like your closing costs and whatnot, which can be a lot, especially when you're getting a brand new home. But yeah, I just tell everybody, think about what you can't see right now. Plan for yourself in the future.
Cristina Follows Up: So taxes that like totally comes out of nowhere to like buying a home is definitely so when you're buying a home and you're getting ready like you're those members that come in and they want to get ready for a mortgage. What do you advise them? Like, do you advise them, hey, don't make a lot of big purchases right now. Like what do you tell them to prepare for that first. Like going through that process.
Rori: I advise them of what's to come. You know, with a real estate transaction, it can take anywhere from, you know, 30 days to three months to close. And in that time, being with opening such a large loan amount, you want to make sure you're set everywhere else in your life. For example, you shouldn't be looking at buying your first home right now for your first car is giving you some issues because you don't want to get that first mortgage and then look, you're screwed over. Now you got to get a new car at the same time. So I really just try to advise everyone, make sure you have all your ducks in order and plan for yourself in the future. You know you don't want to spend more money in the long run because you didn't plan ahead.
Budgeting Pro Tips
8:44
Cristina Asks Question 4: Yeah, okay. So budgeting is a big part of all of this. So what is the best way to start a budget and then stick with it.
Rori: I tell everybody, just plan out your monthly expenses. You know, again, I should be taking my own advice on this one, but plan out what I need to spend each month versus how much I'm going to have left over and set, even if it's just 20 bucks a month, that 20 bucks at the end of the year will add up to, you know, that first down payment for your car, your first home. But just put as much aside as you can. You'll thank yourself later. And believe me, you won't.
Researching For The Best Results
9:24
Addison Asks Question 5: So let's talk about research. We know that is a big component of buying a home or even buying a vehicle. So what are some of the steps or what should our viewers be looking for when they're doing research on these purchases?
Rori: Yeah, absolutely. Dive into your credit report. Give it a full overanalyzed. Because the more you know, the better. Once a year you actually do get a free credit report without having to pull your credit, which is super beneficial. You can check in on your account, see what needs some work, see what you may have even forgotten about in there. But I just advise everybody Making sure your credit is in line is the most important thing that's going to determine your interest rate, your loan amount, how much you can be approved for. So yeah, just make sure you're doing your due diligence and making sure that you are financially ready, not just because you want them, but because you're ready for it.
And I would like to add to that, because I know there's this common misconception that when you view your credit score, it's being hit. You know, it's taking a hit at their points. But I believe that it's just when there's an inquiry from an actual lender is when. So, because I know I don't want them being scared, like, oh, I don't want to check my credit because I don't want it to go down. It's like, no, you don't have to worry. It's I just wanted to clarify that, you know. If you're applying for any sort of consumer loan or real estate transaction, we do have to do a hard credit check. It's nothing crazy on your credit report, but it does show up as an inquiry, which is something that lenders will take accountability because they just want to see, you know, are you out applying for multiple things going on? Because if you're looking to buy your first home, but you've got your credit card applications out here, what are we doing?
You know, when you grow up and you have your report card, it's like your credit report becomes your report card.
Prepping Far In Advance
11:00
Cristina Asks Question 6: Finally. What if you know I am not quite ready yet, and my credit might not be where I need it to be, or I haven't had enough saved up. So I'm maybe two, three years before I can make a big purchase. What advice would you give that type of person?
Rori: Just because you're not ready now does not mean you can't start setting yourself up for success in the future. If you're, you know, looking to start planning for that big investment, I say start looking at your credit now. Start seeing what you can do. You always have a friend at Edition Financial to give us a phone call, and we can talk to you about, you know, what steps you should be taking, what you should be prioritizing in your day to day life to get you to that place you want to be in a few years.
Cristina: I love that you're there to, like, give a helping hand and and not try to sell something. You're you're trying to give them advice to put them in the best place possible.
Rori: Me and my team have great conversations with our members. It's very. We try to make it less like a coaching session, but more I want to help you. What can I do to help you get there?
Cristina: That's awesome.
Addison: That's big. That is big. Because when you see that, somebody on the other side of the phone is actually caring, you know, about getting this done for you and they're giving, you know, the the roadmap really to get it done, I think that motivates them. And that's good to hear.
Rapid Fire Questions
First Big Purchase Advice
12:26
Addison Asks Question 7: So first big purchase car or house?
Rori: Car all the way. It's a reliable form of transportation. If you go by, just like I said earlier, if you buy your first house and then your car, you know, falls out on you two weeks later, that's a whole other payment. But also, having that reliable car makes all the difference. How are you going to get to work? How are you going to go live your social life and whatnot? Always have a car. You can live out of a car.
Buying Your First Car
12:56
Cristina Asks Question 8: Okay. What do you wish that everyone knew before they started the purchase of their first car?
Rori: Oh, I wish everybody had a set budget. I wish people knew about dealer fees, actually, because you know that MSRP you see on the website for that new Nissan Sentra for $23,000 looks great right there. It's going to be $32,000 by the time the dealership gets their fun with you. I just encourage everybody to do their due diligence, make a budget, and really know what you're getting yourself into before you sign up for that payment.
New to Thrifting
13:25
Addison Asks Question 9: So what is your tip for improving your credit score quickly?
Rori: Just pay down that balance. I think a lot of people have this conception of as long as I'm making my minimum payments each month I'm helping my credit score. And while yes, it's better than missing a payment by all means, having a balance actually hurts your credit score in the long run. And what I found for myself personally, the more I make minimum payments, the more the balance keeps going up no matter what I do. So just get rid of your balances. I know it's hard because you know, that's just life. Everybody's dealing with it, but really keeping low utilization on your credit cards makes all the difference.
Budgeting For Impact
13:55
Cristina Asks Question 10: All right. Last rapid fire round question. What is something that somebody can do that will impact the budget? Like a small thing you can do about your budget, but could make a big impact?
Rori: On your down payment. I like to advise, act like you have a car payment a year down the line. You know, if I want to make $300 a month and that's what I want my payment to be, do that for the first year. That's my down payment on this car. And my payments might even be lower than that because I've taken off half the price.
About The Guest
23:19
Cristina Asks Question 11: So, Rori how can somebody get in touch with you? How do they learn more about it?
Rori: You can give me and my team a call. I would say we're all lovely people to hang out with over the phone. Also the Addition Financial website. Of course, I may be bias but it has great resources. There are a lot of like how to videos and you know, putting our toes into the TikTok area with a little bit of younger humor but still super educational. So I've really been promoting that to everybody.
17:35
The hosts share a resource from Addition Financial’s blog, “Top 10 Online Banking Features That Make Your Life Easier.”
Posted on Jul 10, 2025
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