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The truth is out there: With many people who do not have much savings to speak off, should they be purchasing a home today?

In the past, my answer would be a strong NO. Today, my answer would be a MAYBE. Why the change of heart?

Just admit it, sometimes we are just going to buy "stuff". Whether it is a house, or a car, or clothes, or a jet ski. So, for some people, purchasing a home just becomes FORCED SAVINGS instead of spending the money on stuff that only sit on depreciation.

While serving as this realtor, I have many chances to become my client's trusted advisor in one of their biggest purchases ever. I do not take this task lightly and I am very careful in the houses I show them. We normally set up an initial consultation to evaluate their needs.

I serve a large pool of clients with different financial backgrounds. For those who cannot put down payments, I do evaluate their situations and where I am needed (when they ask for advice), I share with them my best home advice - where your home should be a blessing - not something you work hard to make payments for.

Thus, I advocate putting as much down as possible and if there are consumer debts, pay them off first. I truly believe in this philosophy because I feel that this is when you can make your home a blessing to you and your family.

However, I do have a small change of heart about totally paying off ALL the consumer debts. The truth is that people spend and people buy. Be it a jet-ski, vacation, or simply crap, people spend money. So, if they thought that renting is simply an act of throwing money away, then I would say that making that house payment in lieu of having any extra to spend on would be a good idea.
(Note: I still want to advocate that I think this is not the best idea in the world but I cannot or should not judge what people should do with their money.)

There is truly a fine line between saving enough for an emergency, saving enough for a down payment and then just going out to buy a home as a forced savings. Decide carefully.

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Loreena Yeo - Realtor(R) in Frisco TX | Broker
M.Sc, B.Sc
Direct (214) 783-2210
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When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

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Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

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I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

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