UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: aja91 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308686  
Subject: Re: disbelief Date: 6/12/2001 8:57 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 18
Just a little amusing story I wanted to share. I posted a while back about our happy dance. No more credit card debt. Anyway, my wife and I are just starting to think about the possibility of maybe, just maybe buying a house in the next couple years. So we are having fun once in a while by looking at houses and condos in the area. Last weekend, just by chance, we were talking to a lender at a condo complex. She wanted to give us an idea of how much money we could borrow. One of her information-gathering questions was "What is your total credit card debt?" When I replied "Zero", I'm pretty sure she didn't think we understood the question because she asked again about any credit cards over a balance of $500. I said, "Nope, no credit card debt". At that point, she looked at us like we were from another country or something ...but I had a smile from ear to ear. Not sure if she even believed us. And although my wife has been giving me a hard time for paying off the debt so quick, and not saving more, I think she finally understood...she was smiling too.

I had that problem too. No credit card debt, no student loans, one income, two kids, one car loan completely current on payments, another completely paid off, some money in the bank, not yet 30. . . I think he thought we must be in some kind of shady business venture or something!

That was the second funniest occurrence. The funniest was the first house about four years ago. Recently married. Banker read over our financial info, which while not bad wasn't quite what it is now (small CC debt, two car payments). Told us that at current rates he was preapproviing us for a $200,000 mortgage. We said, "Make it $120,000." Guy's jaw hit the floor. Why? He couldn't believe we wouldn't buy the biggest house "we could afford." He didn't know that we planned to turn into a one income, with kids household in a few years. So we'd figured out what we could "afford", on our own terms, on that one income. We wanted breathing room to get the credit cards and at least one car paid off quickly as well. A $200,000 mortgage just didn't fit into our plans, even if somebody said we could "afford" it.

That decision was one of the smartest financial moves we made. Income went up faster than expected, debt got paid off, retirement accounts got built up nicely, all because we avoided the temptation to buy what we could "afford."
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement