Mini Skirts And Affording A Mortgage - Part Three

home buying tips | mortgage help | how to refinance

Would you be surprised to know that affording a mortgage has nothing to do with the bank approving your home loan?

Affording A Mortgage

It sounds audacious but let's face it. Only Joe The Homeowner has the power to prevent another mortgage debacle.

If we want to defend against the next (and the next) mortgage meltdown, we need to put Joe The Homeowner back in charge of mortgage affordability.

Anyway, we should have learned by now that we can't rely on the banks to watch out for us.

Qualification Versus Affording A Mortgage

"Kate, I'm approved for HOW much? I'm shocked. I really had no idea I could afford THAT much. Wow, affording a mortgage is easy."

I shiver remembering the times I've heard similar. So please listen carefully. The bank has NO idea what you can afford. And more importantly, do not look to the bank to find out.

Banks and lending institutions focus on qualifications, not affording a mortgage. Responsible to their investors, qualification guidelines guarantee, within reason, the money loaned for refinancing or buying a house will be paid back.

Think of it this way. The bank has its methods for calculating debt ratios to determine if you are qualified to borrow their investors' money. But the bank doesn't consider your future expenses such as the upcoming college tuition for your twin 16 year olds.

How the twins' tuition will impact affording a mortgage is your responsibility, not the bank's.

Affording A Mortgage Requires Common Sense

The tendency in the financial world has always been to join the crowd. We've all heard the mantra. Raise the skirt line! Leave common sense behind! Go with the trends! Jobs abound! Real estate values are never coming down!

Let's never forget it was Fannie Mae, one of the largest mortgage Flappers, advertising on TV, "Getting a mortgage and buying a house is just THAT easy."

Just the opposite, today's doom and gloom over real estate values and the mortgage debacle are lowering the skirt hems.

Isn't it like a crowd to go to extremes. First, extreme optimism. Then extreme pessimism.

Resist The Temptation Of Extremes

Where did all of the mortgage Flappers go with their mini skirts? They are very busy blaming Joe The Homeowner, and recently, each other.

But let's not dwell on the past error of raising skirt hems sky high. Let's also not allow the fear that accompanies doom and gloom to dominate our minds and chart our future actions.

Buying Straw Hats With J. Paul Getty

Consider J. Paul Getty, founder of Getty Oil Company and one of America's wealthiest who continued to invest during The Great Depression when skirt lengths fell once again.

Explaining his philosophy to the press, he quipped...

"I buy straw hats in the Fall."

Joe The Homeowner, it is Fall. And that means it is time to buy straw hats.

Do not look to the bank for leadership. Depend on yourself. Take responsibility for affording your mortgage. Chart your future and buy straw hats.

You can do this, Joe. You are the future of America's homeownership. You are my hero.

Happy 90th Birthday Dad

Happy birthday Dad. Your youngest daughter, Kate Ford

Continue here to discover how a game of musical chairs affected mortgage affordability at Mini Skirts And Mortgage Affordability - Part Two

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