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HomeFight That Desire To Spend Money!

Fight That Desire To Spend Money!

In Don't Buy That Car! Or Anything Else! We introduced this inevitable situation so many of us get in to.

We see a car that we just can't stand to live without, and now is the perfect time to buy it.

But, is it really?

Today we are going to talk about this desire we have to spend money and where it could get us.

We all have a special love affair with the automobile and other high priced items that become high priority items on the shopping list. Later, as our dream list expands more and more things will be added to the list and one of those will be a house. Unfortunately, by the time home ownership becomes more than a dream and a priority, you will have already bought the car.

It happens all the time, sometimes just before you contact a lender to get pre-qualified for a mortgage, or right before you decide to call us, your real estate consultants. At the interview, you tell the loan officer your target price range. He will ask about your income, your savings and your debts, and then give you his opinion.

It will sound something like this, "If only you didn't have this car payment, you would certainly qualify for a home loan to buy that house."

You see, when determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio.

And this is what we will talk about next.

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Jason Secor & Stephen Wolfe

Living In Greater Birmingham

Your Guide To Living In Greater Birmingham

Greater Birmingham Real Estate Resources

Posted Friday Sep 28
(09/28/07 04:46PM) — Aurelia Ayon,SIMI VALLEY REAL ESTATE,HOMES

Yes don't we all wish that the buyers we are dealing with had the same problem as the above: can't get a loan because of a car payment! Unfortunately, others have bigger problems. But yes, watch where and for what we spend our money wouldn't be such a bad idea! Thanks for the blog!

(09/28/07 05:04PM) — Daryn Gleghorn

Useful information to those who do not uderstand that concept.  I am thinking about doing a Refi myself and am fighting the urge to get another vehicle, even though I know it wouldn't be in my best interest!

 You should put that guy with the funny face as your profile...ha 

(09/28/07 06:11PM) — "The Lovely Wife"...Broker Bryant's Wife...

Stephen...

Many years ago I learned the difference between...Want...And...Need.

Knowing this difference has made a huge difference in the way I think. I always define the want vs the need.

That keeps me from doing dumb things with my money.

Just because I want it...Does not mean I need it :)

TLW...ROAR!

(09/29/07 07:13AM) — Charles McDonald / Your Trusted Broker for Charlottesville Real Estate

Stephen - Just pay cash! seriously, my father-in-law will just save up and only pay cash. I know that some think this is a poor way to do business, but he sleeps really well at night!

(09/29/07 03:44PM) — Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

Stephen, I meet with preforeclosure sellers all the time. Almost without fail they have 2 brand new cars sitting in the drive and the standard must have 52 inch plasma flat screen TV. I wish I could afford these things! My car is 8 years old an TLWs is 9. We got out main TV free from a seller about 7 years ago and it was already 10 years old. I did by a new one for the bedroom though. I spent $99 at Walmart about 4 years ago. We do own 7 properties though. It's all about priorities and common sense. Both rarities in this world.

(09/29/07 09:17PM) — Birmingham Alabama Real Estate, Stephen Wolfe

Aurelia, I am glad you saw the point... being fiscally responsible helps us out in a lot of ways

(09/29/07 09:47PM) — Birmingham Alabama Real Estate, Stephen Wolfe

Daryn, I was actually scared to use that guy at all. I was once known for my bow ties...

(09/29/07 10:43PM) — Birmingham Alabama Real Estate, Stephen Wolfe

Lovely, I should have gotten your help with the post. Way to sum it up in just a few words!

(09/30/07 08:08PM) — Birmingham Alabama Real Estate, Stephen Wolfe

Charles, there is a lot to be said for those who only spend cash...

(09/30/07 09:51PM) — Birmingham Alabama Real Estate, Stephen Wolfe

Bryant, you made a very important quote, and let me reiterate, "It's all about priorities and common sense."

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