The right Mortgage for a first Time Buyer

I am going to go in a completely different direction here. I want to believe that within my 29 years of life I have learned a few things. I don’t think that the type of mortgage loan should determine whether a person should buy a home. There has to be many factors involved before we get into this.

Now, before I begin my rant I want to be clear. There are numerous Mortgage Companies out there who will throw people into an ARM loan, or Step Loan, this is true. But if proper planning and evaluation is done, the home buyer would not have to settle on this option. Lets all be honest. Real Estate is a money driven field. If they can find a way to make money from a person, the homeowner’s best interest is not their concern. And we all know this. Much like Private Education, or Car sales, commission helps to run their decision making process. If a person has okay credit, and an average income, there is a loan out there that they can find, and the mortgage company would be happy to lock them in for 30 years. The major problem is the home buyers.

We all go through life working and saving. Waking up in that apartment complex, waiting for the day that we can walk into our own home. That is the driving factor. The persona of a renter as compared to a home owner is completely different. It is an accomplishment, a milestone that the average four person family dreams to achieve. We just need to make sure we are financially, and personally ready for a commitment of that size.

First, make sure that you are ready financially. Home ownership comes with a lot of added expenses. There are utilities, and insurance, normal upkeep and yearly property taxes. Make sure that you put everything down on paper before you consider buying a home. If there is not a large difference every month with the bills you have going out, to the money you have coming in, maybe now is not the right time. Evaluate every angle; determine if you can cut expenses to adjust the ratio. Never go into a purchase whether it is a car or home with the attitude of we can make it work somehow. Credit is not impossible to fix. If your score could use improving, take the extra year raising your number because that will save you thousands of dollars over the length of the loan.

Second, never make the decision based on a second job. Do not take the responsibility on yourself of finding an additional income beside your steady jobs, this will only add bitterness, and grief to you beautiful new life. Seconds jobs are not the answer to a lack of income.

Next, look at the big picture. If the job (not career, there is a BIG difference), that you have has not given a steady increase in pay or promotional opportunity, maybe it is time to further your education. We have all gotten into the situation with the new cars, and fancy toys, and realized that we are stuck in a rut that we cannot overcome. Giving up some of the needs and focusing on the necessities will not be easy, but, it will pay off in the end. This may mean letting go of cars, or ending a gym membership, cutting back on the nights out. We have begun as a society to focus more on spending money than saving it for retirement. And with the insecurity of Social Security, we need to be more aware now than ever.

I am not a Financial Planner, nor a wealthy business owner. I am a man who has lost my dream home, lost my dream cars, and swallowed my pride over the years more than I can remember. I give this advice based on my mistakes, and those around me. I have been talked into cars, and homes, and paid the ultimate price. The turning point for me, and anyone reading this article, is accepting defeat, picking your self up, and going