UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: aja91 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308367  
Subject: Re: Honest Question-Answer IMHO Date: 5/23/2001 9:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
this is a little loaded but it is a sincere question. okay, person X has a very poor credit history. They want to buy a house. They have some serious cc debt they want to pay off. they have student loans.

okay. In your holy opinion is this person "ready" for a home? I mean, they have a poor payment record, bad credit, etc... If they come to this board they are obviously looking for a way OUT OF debt but a house payment is a sure way to be locked INTO debt, and they have a poor history with handling this said debt. Now, I know we are making "jugements" about other people's situation if we type that they are not ready, so I know IT IS better to just give them advice about credit reports and mortgages and send them on their way. But, does anyone else just have the urge to "get serious" with some of these people and ask them if they are in a financially responsible position to be taking on this new burden? Or am I just a judgemental meanie?


I don't think you're a judgemental meanie. True friends are there to offer advice when asked. The key is, you must be asked your opinion (not just blurt it out), and if you are asked, give it honestly and factually. Don't tell them they can't handle it... they'll try to prove you wrong and likely prove you right.

Outline the cost differences between renting and buying. Has your friend tried getting preapproved for a mortgage? If not, they should... they may not be able to qualify for a mortgage. How much could they qualify for? Do they have the required savings for a down payment? (No, you can't take a cash advance against a credit card for this!) Is the house they desire in that price range? What about property taxes, PMI, water and sewage bills -- often hidden costs in monthly rent charges? Will they feel tempted to fill their (maybe) larger house with more stuff, leading to more credit card debt?

I think if you give your friend questions like these, they may realize that they are not ready for owning a home (or find out they don't yet have the resources the financial community demands before approving funds for a home). And you won't come across as judgemental.

Hope this helps.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

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.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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