If wishes were horses, then . . . .

Even when not looking for a house, one should keep abreast of the real estate markets in various regions.  One can only make a decision if one has facts, not figments of imagination or speculative constructs.

Of course there are certain types of people who probably should always rent:

• those who think they know everything about everything and won’t listen to the advice of a realtor and a banker,
• those who have difficulty paying something on time,
• those who might find taking care of a home–cutting laws, seeding, trimming bushes, shoveling snow, cleaning gutters, painting, etc.–a real time-waster,
• those who become overwhelmed at the complexity of home ownership and bury their heads in the sand,
• those who can’t save money if their lives depended upon it,
• those who prefer to move rather than to deal tactfully with next door neighbors,
• etc.

As far as the tact comment, of course, I wish all jerks and slobs–next door neighbors who throw beer cans on lawns, even if just on their own lawns, or who have hellish parties with guests that slam doors in the middle of the night–not live by me.  But as the old saying goes, if wishes were horses, then all beggars would ride.

Start with an honest self-assessment, but first check your credit score. Anything less than 680 might indicate that you have some issues.  But you do need to know what your credit scores are and you do need to know the scores from all three bureaus, for each of them will rank you: Experian, TransUnion, and Equifax.  Moreover you need to know what is listed on those sites–judgments, late payments, false statements.  By the way, the hardest to deal with are false statements.  Those take perseverance and patience in addition to documentation.  There are numerous sites out there that offer free credit reports; but as the commercial says, do not pay for one.  A simple way to find out your credit score is to obtain a turn-down letter for a loan.  In that letter will be a number and/or an address that you can contact to obtain a few credit report.  If you don’t have an inkling where to go, consult a local reputable personal banker. For goodness sake don’t tell the banker everything but don’t lie. You want to establish a viable working relationship, not find a psychologist.  Listen and take notes.

As far as purchasing a home, for a conventional, FHA, or VA loan, you need to have been in the same line of work for at least 2 1/2 years and you must have no late payments within the last two years or more.  Before I attempt to answer any questions that you might have regarding the differences between all types of home loans, let’s first take a look at what home ownership entails and how to become a smart buyer and owner.

Take a self-assessment.  Do you have wanderlust?  Do you plan on divorcing?  Do you plan on marrying? If you have children, do you like them and want the best for them?  Can you save money, money enough for the down-payment and money enough for those yearly repairs without having to refinance your home every five years or so, which I argue should never occur unless in certain significant circumstances? Would you take care of your little patch of heaven or would you contribute to the decline of the neighborhood? Are you a realist; in other words, do you make decisions based on facts, not on emotions?