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Trust your gut when it comes to getting a mortgage

[Mar 9, 2011.]


How many times have you heard about the American Dream and how homeownership plays a part in that? People want to own a home for many different reasons and one of the most common is to build wealth. But with all the chaos in the housing market in recent years, you may be wondering if it really makes sense to get a mortgage loan to buy a home.

Mortgage advice: trust yourself

Here are four reasons you should trust your own instincts about becoming a homeowner, rather than buying into what everyone else thinks:

  1. You, and nobody else, must come up with enough money to make monthly payments on your mortgage. Don't let family and friends--or the media--talk you into getting a mortgage loan when you know that it's already a stretch to pay for rent, transportation, food and other expenses. There are mortgage calculators that can help you figure out what type of mortgage payment you might be able to afford.

  2. Today's mortgage rates are low, but how's your credit? Having bad credit means you will not qualify for the best mortgage rates, and may be turned down altogether for a loan. Mortgage lenders are being very cautious about who they will lend to, so waiting until you clean up your credit may be a smart move.

  3. Do you have a feeling that layoffs are coming at your company? Millions of Americans have lost jobs over the last few years, and having a mortgage didn't keep them from the chopping block. If you truly believe that you may be jobless in a few months, it is not prudent to make any major financial moves. Take a wait-and-see approach until you feel more stable.

  4. Are you comfortable taking on a huge mortgage debt? If you already have a lot of debt from credit cards, student loans, or auto financing, throwing a mortgage payment into the mix might make things a lot worse. Focus on paying off all those debts so that you are in a better position to apply for a home mortgage when you are truly ready for home ownership.

Get mortgage advice

Take time to look around to get as much free mortgage advice as possible. You can go online to get mortgage advice or attend community programs. Newspapers, magazines and books from your local library can help you become more informed about getting a mortgage, and equip you to make the right decision when the time comes.


About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.

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