How People Got into Trouble Lately (and how not to be one of them)

The media is of full of stories today about many homeowners in trouble.

As you contemplate your own purchase, you don?t want to end up like these people. While there are many reasons why certain homeowners are having difficulties today, the biggest reason is that they put themselves in harms way. Many loans offer ?teaser? type rates that will increase dramatically at some future date. While these loans can still be used effectively, many homeowners had hoped that by the time their loan would increase, the value of their homes would have increased and their own income would also have increased.

If either or both of those events don?t happen, the homeowner may find themselves in a loan that they can no longer afford the payment. The best way to avoid being one of these homeowners is to not stretch yourself in the first place. Find a loan that provides you with at least five years rate protection.

Qualify for that loan in the ?worse? case scenario. So even if the loan were to reset in five years or more, you can rest assure that you will be able to afford that payment. Don?t let your mortgage professional ?squeeze? you into a loan that you are not comfortable in. In the end, it will be you making the payment, not the loan officer.

Tell your loan officer what payment you are comfortable making. Don?t let him or her tell you what the bank thinks you qualify for. With a comfortable payment, you can enjoy your home without the stress of making that monthly payment.