DEAR DAVE: We’ve made an offer on a house we really like through a first-time buyers program. Now, after looking over our budget and debts again, my wife and I are having second thoughts. We haven’t signed or turned in any paperwork yet. What do you think we should do? — Craig
DEAR CRAIG: I wouldn’t go through with the deal. I advise people to be debt-free before buying a home, because you want a home to be a blessing, not a curse.
Home-ownership when you’re broke is never a good idea. And basically, that’s the situation you’re describing. You have debt, and you’re trying to squeak into something with a first-time buyers plan. The translation? You have no money.
Everything that can go wrong will go wrong. That’s Murphy’s Law, and he’ll move into your spare bedroom along with his three cousins — Broke, Desperate and Stupid.
Get your debts paid off, build up an emergency fund, and save up a good down payment before buying a home. I know that’s not the popular answer, but it’s the smart one.
