Faced with an impossible choice of giving up their home or working with near-impossible bank constrictions, homeowners are facing foreclosures, short sales and looking for help with loan modifications. In these times, borrowers aren’t really worried about the fluctuation of their home values. Most realize that the value of their homes has significantly decreased. Bottom line, borrowers care about their monthly payment.
Compare that to the monthly rent prices in The US which top out at around $1008 per month, It may be a smart choice to buy your little slice of heaven. I say may be, because just like with average mortgage prices, this is all geographically driven. If you live in Manhattan, for example, you will obviously be paying a higher rent for a 1 bedroom 1 bath apartment than you would for the same apartment in Enid, Oklahoma. And forget about buying a house in Manhattan.
Borrow from family. This does not clear your debt unless your family member will forgive the debt. You will still owe money but possibly at nil or very little interest. This will then help free up cash. Do not borrow at the expense of your family relationship. Money can change people so be warned.
Basically, the more sophisticated programs let you track everything under the sun…spending habits, expenses broken out by month, tax implications, car dealerships bad credit no money down pay-down dates, etc.
Do Not Overextend: The biggest down fall to letting your credit begin to deteriorate is getting yourself over your head in debt. You should try to limit yourself to a payment of no more than 12% of your income regardless of what the lender allows. This is one way you can ensure you can make the payments so an unexpected bill arise and you can handle it without it effecting your credit.
I bought my first home during the peak of the real estate boom thinking I would own it for a few years and make a massive profit because prices were rising dramatically every year. Was I ever wrong. Within 2 years my property value took a downward spiral and to this day I owe way more than what it’s worth. But this doesn’t bother me because I have a long-term plan where my home will make me money every month. Let me show you how.
It can take from a few minutes to months and even years to find out that this has happened to you. In fact, sometimes people don’t even find out they have been a victim of identity theft until they apply for a loan and a credit check is done. It is always good to review all your bank and credit account statements. Sometimes people find out they have been victimized by looking at their credit card or bank statements and finding transactions they did not originate.
Finally always make sure that when you go to the car dealership that you know what kind of car you are looking for and what price you are willing to pay. It may take some negotiating but stay firm on what you are willing to pay for the car. Remember that these dealers need to move cars and you always have the upper hand.