Today, I am going to write about something that really should not have to be said but with everything that is going on with mortgage loans defaults and bailing people out, it needs to be said point blank.
Let’s say you walk out to your mail box today and you receive your monthly bank statement. You open up the envelope and it says you have $100 in checking, $50 in savings (Yeah - it is still positive). You keep looking for an IRA or 401K statement but there is never one in there because you still have not started your retirement accounts. Let me tell you what you know is right and feel in your gut but don’t want to say out loud - you are not ready to purchase a home. I repeat you are not ready to purchase a home. What you need to do is put a game plan together so you are not a statistic - FORECLOSURE OR BANKRUPTCY.
Yes, you could probably qualify for a home loan but you would be one major repair away from some serious problems. There are so many variables on why the banks are looking for help to fix the defaults and mortgage problems but you need to make sure you have done your proper planning to make sure you will not need bailing out.
It is sad to me that most people that received their high school diploma or even better a college degree and still have no idea how financing works in the real world. I know people that had almost perfect scores in their school years but 5 years out in the real world have had to file bankruptcy and have their home foreclosed upon.
I am not saying you have to have a 12 month cushion in the bank and have a credit score above 740 to be ready for home ownership. It would be nice but then very few people would get to experience the privilege of home ownership. Remember, this is a country on opportunity! What will you do with your opportunity?
Please protect your hard earned money, yourself and your family. If you do not know were to begin with purchasing a home then start with educating yourself. Contact a mortgage professional or go to a home buying seminar. Don’t let anyone push you into buying a home until you are ready and I mean ready financial not emotionally. If you have any questions please feel free to contact me at svarin@texasmt.com
Sean Varin is a mortgage professional and co-owner of Texas Mortgage Team. He specializes in the Dallas Fort Worth area and is a frequent voice on Texas Home Central’s blog. Sean can be reached at SVarin@Texasmt.com or 972-317-9900
This entry was posted on Wednesday, November 7th, 2007 at 5:35 am and is filed under Home Buyer, Money Matters, Mortgage, Real Estate, Tips for Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.