Watch the Credit Meter

By
Real Estate Broker/Owner with The Jordon Wheeler Group GA License# 264359

I always tell my buyers after you close watch out for the new credit opportunities coming your way.  After all you worked so hard to get your credit cleaned up, pay down or pay off the credit cards, settle all of the write off accounts, etc. you just don't want to go back down that aisle and jeopardize your house payment.  Your credit score is going to go up and companies are going to send you offers for new credit cards...but RUN!  Throw those offers in the trash.

Sure you can 'afford' the additional credit because you have great income now, but the rubber meets the road when you are staring all of the payments in the face again and the great income is not there.  Be sure to be prepared to stay in your home. Build your savings and commit to reducing debt or being debt free.

Meter

Watch that credit meter!  When the needle on the dial starts going towards the red, it's time to stop and seriously assess the financial picture.  You might just want to get mad at 'credit' now and make the spending adjustments before the dreaded day comes.  Check out your debt to income ratio.  Is it still below the 45% you needed to qualify for the mortgage loan in the first place?  The DTI may be the starting point to indicate if you need to cut back.

 

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    J W Group

Office 404-418-8092 Cell 404-246-3210 Fax 404-991-3770

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Rainer
34,079
Melinda Pearson
Prudential Serls Prime Properties - La Grange, NY

Very good point, know this issue first hand!

Feb 02, 2011 12:22 AM #1
Rainmaker
359,937
J. A. Michail
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

Excellent advice Jordon and I thank you for sharing your thoughts!

Feb 02, 2011 12:27 AM #2
Rainmaker
534,607
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Melinda - Hi and thanks for commenting.  It is so easy to fall into this trap after the 'high' of buying a first home.  Best of success to you!

Feb 02, 2011 12:28 AM #3
Rainer
169,779
Muhammad Mushtaq
Weichert, Realtors® - SBA Group - Fall River, MA
Broker/Realtor

With freedom comes responsibilty. I wish everyone understood that and the whole wouldn't be in the financial turmoil today.

Feb 02, 2011 12:33 AM #4
Rainmaker
534,607
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

John - thank you for commenting.  Best of success to you and SaraMana Properties. 

Feb 02, 2011 12:34 AM #5
Rainmaker
534,607
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Muhammad - I definitely agree with you.  Thanks for commenting and best of success to you!

Feb 02, 2011 12:59 AM #6
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Rainmaker
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Jordon Wheeler

J W Group Real Estate Sales and Service
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