Four Reasons Not to Buy a Home Even if You do Qualify for a Loan.
As a realtor I am constantly helping people make decisions about how to use their money. I personally believe it is my utmost duty to help my clients make responsible decisions.
So Here Are Some Ways that I Work as your realtor to make sure you make a wise decision when buying a home.
1) Don't buy to flip and make a quick buck. If you are trying to buy a home and flip it I will do everything possible to discourage you unless you have proven over time that you are quite capable of doing this and making money or at the least not losing money. Experience has taught me that the overwhelming number of people who decide to make money by "flipping" homes end up trying to sell something that is difficult to market. In this market if you are not a finish carpenter then you will lose money. There is just not enough margin between the price you pay for the home and what you can sell it for to assume you can "fix up" a home and sell it with a profit margin. If you are a finish carpenter you can save a lot of money and have a much better chance to sell the home. If you are not a finish carpenter then your work will not be to the quality it will need to be to sell the home at a profitable price. I have shown too many homes that were "fixed up" by a "flipper." They do not sell easily and the sellers usually lose money.
2) Don't buy a home if you cannot save. If you are in the market for a home and have not saved up enough money for a down payment of 3.5 percent and the closing cost I will try to talk you out of buying a home. Now of course if you can show from previous experience that you can save money then buying is probably a good idea. If you have saved enough to buy and want to finance all of the purchase and keep your savings then I can support you in buying. If you have never been able to save then here are two good reasons I don't think you should buy a home.
A) You will have unpredictable costs that are absolutely necessary for maintaining your home. This is critical so that your home is ready to market when you need to move. You are a fool to buy a home and not plan to have money to fix things and update things when they need to be done. If you have not been saving money in the past don't tell yourself a lie. Start saving money now and prove to yourself you will be prepared to take care of a home.
B) It is paramount that you are able to save enough money so that if there is an emergency situation in which you are not able to make payments for a few months you will not lose your home. It is a tragedy that there are thousands of homeowners who are losing their homes because of a lack of cash. Again, if you have not saved money in the past start saving now and prove to yourself that you are capable of buying a home. None of us can predict our future. Save enough money to live on for at least six months before buying a home.
3) Never buy a home in order to "fix a relationship." If you are currently struggling with a relationship and you think spending money together for a home will be the solution to getting everything "back to normal", think again. Financial stress is the greatest cause of stress in relationships. According to the latest American Express Spending & Saving Tracker, nearly one-in-three (30%) couples say finances cause the most stress in their relationship, followed distantly by intimacy (11%), their children (9%) and their in-laws (4%). When you make a decision to spend a lot of money on a home together you have just begun to put that relationship in a stressful situation. Getting everything packed and making a thousand decisions about where, what and when to move in will just add stress that you cannot begin to comprehend now.
4) Never buy a home when you have not sold the home you are currently living in unless: You have enough money to make both mortgage payments and you have enough money saved to make both payments in case of an emergency. You want to ruin a relationship, try making payments together on two homes when the money is tight.
I would love to help you buy a home if you have learned to save money. If not I am available to help you learn how to save or I can refer you to someone else who can help you learn to save. Please do not think you can just change a life habit without help.