Well, I had my appointment with the mortgage company. I have to say that it was really nerve wracking. I’m pretty sure that I would have never even tried such a bold thing as apply for a home loan if it were not for my very good friend. She had confidence in me when I didn’t…
What I had was my principles as taught to me by financial gurus. I have felt for a very long time that the best way to homeownership is making an all-cash, paid in full purchase. With this method, there is a promise of freedom from monthly payments and interest charges. I can see how that sounds very attractive, but is it so attractive when you look at my reality of trying to pull that off.
My journey started in Spring 2005 when I decided to get a divorce. I was about 6 weeks pregnant with my 7th child the day I changed the locks. It did not matter to me that day that I had 6 children with another one on the way to provide for, no education, no way to work and that I was stepping into total uncertainty.
Well, not total uncertainty, because there was one thing I was certain of – if I did not file for divorce things were going to go from bad to prison. If you have ever lived in an abusive situation you’ll have an idea of what I mean, if you haven’t, count yourself blessed.
Anyway, I changed the locks and changed my life forever. An unemployed, undereducated, pregnant, single mother of 6, soon to be 7, children and I was renting a mid-sized home in the suburbs.
Flash forward 7 years and I’m still renting a (different) mid-sized home in suburbia. A lot has happened in between, most of it expensive. We’re talking about an ugly 2 year divorce and custody battle, another custody battle, bankruptcy, my returning to college full-time in a private accelerated program (read inflated tuition and full-time daycare for 4 of my children), a life and death medical crisis that ended well, praise God, but has cost me several hundreds of thousands of dollars – and is still costing me today! And yes, there’s more.
Yet, through this all, I have been able to rebuild my credit rating and qualify for a home loan!!!!
Whoo Hoo!!!! Armed with a surprisingly high credit score and my tax return – I did it! Sometime in the very near future, I will be living in my own home.
If I had dug my heals in and insisted that a cash purchase is the best, no the only, way to buy a home, I would be looking at another decade, at least, of scrimping and saving while paying twice in rent what it would cost me to buy the very house I’m living in. Did you hear that Dave Ramsey? I would have flushed $84,000 down the rental toilet while trying to save up money for your 100% down home buying program you brag about. In my opinion, that would not be a financially sound decision. I’d rather use that money to benefit me and pay down my mortgage at an accelerated rate.
In fact, by the time I got the money together, most of my children would have grown up and moved out. I wouldn’t need the home I had saved so long for, scrimping and sacrificing for. (It really has been a huge sacrifice.) A cheap one-bedroom condominium would do by then. What a waste.