Did I get your attention? I know what you're thinking, a real estate agent in Jacksonville, not shouting it's a good time to buy, when most agents are on rooftops shouting, that it's a great time to buy. Prices are great, interest rates are low, but for some it's not a good time to buy. Here are 4 reasons you shouldn't buy a home:
1. You have no money to put down. Yes, there are a few no money down loans and some down payment assistance programs out there, but 100% financing gives you no wiggle room in equity, just in case you have to sell sooner than planned. Most down payment assistance programs are an interest free, no payment plan, unless you sell or refinance before 10 or 15 years, then you have to pay it back. Let's not forget PMI, private mortgage insurance, that you will pay each month, making your payment higher.
2. Your entire offer hinges on the fact that the seller HAS to pay your closing costs, because you don't have the money to pay them yourself. There's nothing wrong with asking the seller to pay your closing costs to help keep more money in your pocket, nothing wrong with trying to get a good deal.
3. You're in debt up to your eyeballs. A house is more debt, that comes with property taxes, homeowner's insurance and maintenance repairs.
4. You have no savings. What happens if your new home has an unsuspected repair and you have no money put away for a rainy day?
Do any of those apply to you? If you answered yes to even one, it's NOT a good time for you to buy! I know that sounds harsh, but let's look at the past few years and what's going on currently. Short sales are everywhere in the Jacksonville and Clay County Florida market. At the end of the day, let's be honest, the responsibility still lies with the homeowner and Not the banks, Not the government, and Not Wall Street. Many home owners have, not only a first mortgage, but a second or sometimes a third. I've seen a common trend amongst most short sale sellers. Little or no down payment when they bought, no savings, huge debt, multiple mortgages on their home and yes, there are some that have had unforeseen circumstances out of their control happened. Imagine though if they had no debt, and a savings, how much better off they would be, even with events happening outside their control!
Imagine yourself buying a home with 20% down. The seller agrees to pay your closing cost, so instead of paying them yourself (which you have the money in savings), you use that money to pay cash for new furniture. A 15 year mortgage, instead of a 30 year mortgage. No debt, so you can pay extra on your mortgage, so instead of paying it off in 15 years, you pay it off in 10? 3 to 6 months of expenses saved so if an unforeseen event occurs, it's not your family's total downfall.
I write this, because I'm currently taking the Financial Peace University by Dave Ramsey. I'm not taking this class because I have all my ducks in a row, that's for sure, but because I've been there and I want a better way for my family. If I had followed those 4 reasons above, when I bought my house, things would have turned out a heck of alot different.
I also hate seeing families have to leave their homes to rent because of financial difficulties and hope that today's buyers learn from the mistakes of current sellers, because really, we do have control over our own personal economy, even when our nation's economy is weak.
Pam lists and sells homes in Jacksonville, Orange Park, Green Cove Springs, Fleming Island, Middleburg,Ponte Vedra, Atlantic Beach, Neptune Beach, Jacksonville Beach, Orangedale, Fruit Cove, Switzerland and St Johns County Florida.
Are you facing foreclosure? Call Pam at 904-910-3516 to discuss your options.
Pam Graham with All Real Estate Options handles Jacksonville Florida short sales, Orange Park Florida short sales, Fleming Island Florida Short sales, Middleburg Florida short sales, Green Cove Springs Florida short sales, St Johns County Florida short sales, Ponte Vedra Florida short sales, St Augustine short sales, Palm Valley short sales, Duval County Florida short sales and Clay County Florida short sales.
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Mortgage Assistance Relief Services Disclosure
ALL Real Estate Options is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.
