You Know You Shouldn’t Buy A House When….
You look in the couch cushion for a down payment
Anything at your workplace is deep fried
You know any bill collector on a first name basis
Your car payment is more than 30% of your take home pay
You are on a payment plan at the local payday loan office
Your credit card minimum payment is more than 15% of your take home pay
You don’t know what “interest rate” means
You’ve never heard of a “fixed rate” mortgage
You can’t keep the $100 minimum in your checking account
You’ve been late paying the rent more than once this year
You think negative amortization is a good thing
You change jobs more than twice a year
You seek investment advice from the payday loan clerk
The current check number in your checkbook is 6
You have paid one credit card payment with a cash advance from another
You have more than $5000 on your credit cards
You cash your checks at a check cashing branch
Your bank account is in your ex-girlfriend’s brothers name
From: broknowrchlatr
You are not able to save money each month while renting
You have declared bankrupcy in the last 3 years – obviously you need to learn how to manage money
You have less than 5% to put down – PMI is terrible and 80/20 loans are risky (for most)
Your savings ratio matches the national average
From SavvySaver
You had to have a co-signer on your car loan
You have had anything repossessed in the last three years
You think leasing furniture and/or electronics is a good idea
You aren’t contributing enough to your 401(k) to get the full company match
And I know you’ve got a few. Let’s see how long we can make the list! Leave them in the comments and I’ll add them in!
10 Responses to “You Know You Shouldn’t Buy A House When….”
Comment from savvy
Time May 7, 2007 at 3:26 pm
- You had to have a cosigner on your car loan.
- You have had anything repossessed in the last three years.
- You think leasing furniture and/or electronics is a good idea.
- You aren’t contributing enough to your 401(k) to get the full company match.
Comment from alex
Time May 8, 2007 at 3:53 am
“Anything at your workplace is deep fried”
Does this mean that people who work fast food cannot afford a home? If so, that’s an awful assumption. Many people in the food service industry make great money. And you don’t know how one manages their money based on where they work.
Comment from Hazzard
Time May 8, 2007 at 6:17 am
Alex,
There are exceptions to just about every one of these. Statistically, someone who is working in fast food has a much lower chance of being able to afford to buy a home. If they are very good with their money and have moved in to management etc, then obviously their chances are much better.
I don’t know of anywhere in the country that housing is so affordable that someone could safely cover a house payment and all the additional expenses on $7-10 per hour.
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Time May 13, 2007 at 9:16 pm
[...] You Know You Shouldn’t Buy A House When… [...]
Comment from PT
Time May 14, 2007 at 2:45 pm
- You’re Not A Regular Reader of Everybody Loves Your Money!
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Time May 14, 2007 at 6:54 pm
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Time May 15, 2007 at 3:09 am
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Comment from Susanna
Time May 16, 2007 at 10:31 am
I don’t know of anywhere in the country that housing is so affordable that someone could safely cover a house payment and all the additional expenses on $7-10 per hour.
I just did a search on Realtor.com for the city I live in and found 198 homes for sale under $75,000. For example, $40,000 will buy a 880 sq. ft. 3BR/1BA in an OK (not great, but OK) neighborhood.
Comment from Hazzard
Time May 16, 2007 at 11:59 am
I stand corrected. I guess I’m so exposed to such high real estate prices in the NW that it seems amazing to me that you can still buy a house for that price in other areas. I may have to move when I retire.
Comment from broknowrchlatr
Time May 7, 2007 at 9:52 am
…you are not able to save money each month while renting.
…you have declared bankrupcy in the last 3 years – obviously you need to learn how to manage money.
…you have less than 5% to put down – PMI is terrible and 80/20 loans are risky (for most)
…your savings ratio matches the national average (