Elder Perry talked a lot about debt and not getting yourself in over your head.  He also spoke about only purchasing a home that you can afford according to your income not according to your neighbors home across the street.  This really struck home since I have the opportunity to help so many people obtain mortgages on a regular basis.  It also caused me to reflect on the current mortgage industry, credit crunch, and the economy that we now live in.

One of the biggest reasons we are facing hard economic times and seeing all of the big banks and mortgage lenders go out of business is because of people who want to purchase a much bigger home than they can afford with their current income.  Have you ever heard of interest-only loans or adjustable rate mortgages?  I’m sure you have and I’m sure you probably know that they are pretty much obselete as of the beginning of the mortgage meltdown.  Most interest only loans and adjustable rate mortgages were used by individuals and families who could not afford the home that they wanted to purchase.  So, they made the terrible decision to obtain one of these loans and it ended up being detrimental to their personal finances, most times ending in foreclosure because they could not afford the payments.

For anyone looking at purchasing a home in the near future, I urge you to only look and consider homes that are within your income range.  No one wants to be “house poor” and no one wants to get in trouble and risk the possibility of losing their home.

Please contact us right now so we can pre-qualify you for a mortgage so you know exactly how much home you can afford.

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This had been the first time I had heard about it and I was sick for them and every other person whose identity was stolen (which was around 2 million people).  I immediately jumped on the local news website to read about this disaster, you can read about it here.  I guess this post kind of goes hand in hand with my post yesterday about your credit scores.

If you have secured a loan over the last year or so through Countrywide, I would definitely hop on the internet today and check your credit score.  It is much easier to clean up your credit in the beginning phases of identity theft than a few years down the road.

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