Home > Blogs > Erica Crowell > Thoughts...

Sometimes it DOESN'T Make Sense to Buy a Home

By Erica Crowell

Real Estate Agent with eRealty Inc.

July 14, 2009 08:42 AM

If you already walk a tight budget line...don't over extend yourself just because a lender says you can!

Often times buyers get qualified for a loan and on paper, they can afford a HUGE amount of money. Stick strong to your monthly budget and don't feel pressured to spend more. Take a serious look at your financial picture and decide if buying is a smart choice when you're already clinging by your fingernails!

If prices are still dropping...don't buy quite yet unless it's a LONG Term decision.

If you're looking to make a quick buck on a home in the next 12-36 months, now is NOT the time to buy. That being said, you may find a good deal on a foreclosure or distressed sale. Just don't jump at any old house though...make sure you've watched the market trends and are confident in your decision if you do end up in a home that has depreciated.

Your job may be the next to go...make sure you've got a little bit of security or some cash stashed!

The worst thing that can happen to a buyer is losing a job after you've just moved into a new home. Make sure that IF something were to happen, you've got something in reserves to cover your mortgage. If there are rumors around the office that cuts are being made, sit tight and ride it out. A foreclosure or short sale is not worth the potential credit damage.

Here are some other interesting Tips I've found about buying a home

Don't buy a home with a boyfriend or girlfriend. Some believe that can wind up being "the worst mistake of your life." If you eventually break up with this person, you will have a huge financial mess on your hands. Also, if your boyfriend or girlfriend stops paying his or her portion of the mortgage, you'd still be responsible for it, and any missed payments or other penalties. In other words, your loved one could royally mess up your credit. Nobody ever thinks this is going to happen to them, but it happens all the time!

This last one may come as an even bigger surprise: Experts recommend not buying during the first year of marriage. They say "spend that first year renting and building equity in your relationship, before you undertake the additional responsibility of a house."