Life is a game of circumstance, chance and decisions. Let’s face it, people sometimes make irresponsible decisions and are then surprised or devastated when the consequences of those bad choices come to life. The most common bad decision I see is buyers signing up for mortgages they can’t afford or can afford in the beginning but then spend their money on trivial things. Who needs to pay their mortgage payment when they can dine at 5-star restaurants four days out of the week?
Foreclosures are no laughing matter – they ruin lives, lifestyles and livelihoods. The most important thing to remember in these situations is that a promise was broken. Many people know they can’t afford something, but sign anyways thinking that the odds will be ever in their favor. Nine times out of ten, it won’t be.
I can’t stress enough to do your research and evaluate every detail of your budget before agreeing on a mortgage loan and interest rate. If you know you’re a frivolous spender, do yourself a favor and think long and hard before entering a binding loan that can potentially destroy your life. A new wardrobe is not worth loosing your – and your family’s – home.
Buying a home, and with it entering a mortgage, is one of the most important financial decisions of your life. You may think you’re ready for the commitment – but are you?