September 5, 2013
“News sources report the real estate market is improving, interest rates are steady and affordable, prices are up and inventory is low. Until that changes, it’s all true.”
It’s rare that the topic of real estate doesn’t eventually surface in most conversations. It reveals a common denominator that home ownership is important in America.
Despite having been burned in the recent fires of foreclosure, few people have ever said they never want to own another home. What is new and different is that they want to return with caution, wisdom and prudence.
Prudence is an old-fashioned word and not commonly used. A good brush up is provided in Proverbs 14. It centers on “caution and wisdom.”
Lenders hold the keys to prudence where credit scores are analyzed and paystubs, tax returns and W2’s or 1099’s are examined. Job security is considered a part of the application process, along with longevity and experience.
Gone are the days when a minimum wage worker can be assisted and prompted to “state” his/her income and qualify for any loan for any house.
Looking back, its unimaginable that happened, but sellers reaped profits; lenders cashed in on fees by adding prepayment penalties to loans with early due dates; agents and brokers sold lots of homes. The buyers loved the ride for a while, until it became apparent they were the victims of folly.
New State and Federal safeguards should prevent this catastrophic and criminal event again—until greed creeps in and people find another way to get what they want.
A great lesson in life is to learn we can be happy without everything we think we want. We were designed to be just that!