IT seems this is the only thing the media has to report on. Every newspaper, every news show! And it is always the same: How is the Government going to bail us out? It is obvious to me, that if I am waiting on the government to solve all my problems? im in deep S%!T! So, how do we fix the foreclosure problem? By doing a better job at educating potential home buyers that owning a home is theAmerican Dream, but, buying a home before you are financially & emotionally ready = FORECLOSURE. The "got to have it now" mentality is what starts the problem. Financial institutions prey on this attitude. So, in my opinion, it is just fair that so many of these institutions are in serious financial condition. This is a list of a few considerations the first time homebuyer should consider.
1) Never buy a home that the monthly payment will exceed 25% of your take home
pay! I don't care what the mortagage company tells you.
2) Never buy a home until you have a 20% down payment in savings. Anything less than
20% and you are already starting on the wrong path.
3) Have 3 - 6 months of expenses in savings. Wola! when a hard time hits, you have
expenses covered for a bit.
4) Never fall for gimmick or teaser programs.
5) You only settle for a fair market percentage and a fixed rate.
6) Never fall in love with a home until the deal is done.
You can count on one thing. If you purchase a home and your broke, no savings, adjustable or interest only: Murphy will move in with you. Nothing positive can come from sacrificing good financial decisions when you buy a home. Do yourself a favor : Make it a positive Dream Home experience, not a FORECLOSURE!
Contact me at www.LivingChattanooga.com for more information.
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