12 Jul My Mortgage Broker Said I can Afford A House, So I Should Buy Right?
It is the all American Dream to own a home. We are bombarded with this thought process from the day we are born or the day we immigrate to this country. We receive this message in school, from the media and our parents. In order to be successful you must be a home owner.
Even though the mortgage and credit industry house of cards is collapsing all around us the message is still; “This is a great time to purchase a home or refinance your current loan.”
For some this may be the perfect opportunity to purchase a home or refinance. But this is also a time to be very wary of mortgage brokers and lenders in general. The economy is at a very brittle point and EVERYONE is currently just looking to survive.
This means that people are desperate and when people get desperate their logic, ethics and general rational state disappear. Therefore, you must do your homework before you buy during this bleak economic outlook. Quite frankly I recommend doing your homework regardless of the economic outlook.
Start with being honest with yourself, especially if you are purchasing a home for the first time. Are you single and your career requires you to work 50, 60 or more hours a week at all kinds of crazy hours? You maybe asking why this question matters but it is a very prudent one. If the answer is yes, than how are you going to be able to maintain the home? Yard work, maintenance on the home and general up keep does not happen majically by itself. Trust me on this one.
In fact upkeep is one of the major reasons of why people are in foreclosure. They purchased a home but did not anticipate the cost to furnish the home, replace the roof, replace the air conditioner, paint the house, keep up the lawn or in the case of a new home put a lawn in and landscape. Although home ownership can be very rewarding it can very quickly become one of the major stressors in your life. These stressors than lead to failing health, relationships as well as quality of life.
To help avoid these stressors due to a home purchase I recommend you do several things. Make a list of pros and cons about purchasing a home. The only way this will work is to be honest with yourself. Ask your friends, parents and/or other family members about their experiences with purchasing and owning a home.
Then if you decide to purchase a home look at without emotion. Realtors play on your emotions and may attempt to get you purchase outside your comfort zone. Check the lender/broker out on Mortgage Fraud Blog. Let’s face it anymore you can also just Google the lender, broker and real estate agent to check them out.
Remember that knowledge is power and doing your homework before your jump into one of the biggest if not the biggest purchase in your lifetime will allow you to avoid making a decision out of desperation and emotion. Don’t buy into the media hype that you are not successful unless you purchase a home.
The successful homeowners are those who did their homework, checked out the home, lender, real estate agent, broker and neighborhood before they decided to purchase. There are successful because it was only after checking all these factors they made a decision that was based on logic and common sense and not emotion.
Written by Kansas City Bankruptcy Lawyer, Rachel Lynn Foley.