There are a lot of inexpensive homes for sale in the Newnan Georgia. By “inexpensive,” I mean under $70,000.
And if you crunch the numbers at today’s low interest rates, house payments on recent purchases in the $300-$400 range are not as uncommon as one might expect.
It is certainly true that the amount of income required to qualify for a loan on a house in this price range places nearly everyone in the realm of a potential buyer. Many would-be purchasers have car payments that are higher than their potential monthly mortgage outlay.
So therein lays the problems: Debt to Income ratio and the dreaded FICO score.
Cavalier attitudes toward accumulated debt and the accompanying timely repayment of the same preclude many from actually saving money and buying a piece of America.
And these days, it seems that popular culture is embracing the concept that borrowers are victims and that paying back what you owe is optional.
The net result is an ever diminishing pool of potential home purchasers. And with each passing month the numbers get worse.
Consumers need to be educated. A good credit score is worth its weight in gold.
And if we don’t get THAT message out, we will never emerge from the current market.
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