If most of these buyers were to start over with a rent to own option, instead of just buying straight out, I do feel that they will have a better chance of success. The requirements for buying a home through traditional banks has become very strict, which is a good thing and a bad thing.Not only are you supposed to have near perfect credit you also have to have a very low debt to income ratio a...
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...wning another home until they are debt free and continuing that trend once they purchase. With the amount of fraud that is happening around this country it might not be a bad idea to start using cash for everything and just having one emergency credit card. In doing this you know at the start of every month what you have left over once all the bills are paid.
I genuinely feel that another market crash can be avoided if people were to just use common sense in teaching the next generation about saving their money, instead of always buying the newest or hottest item, will go a long way in protecting themselves. Our society needs to be more realistic about what people can really afford and not how much they can spend on credit. So, in conclusion it is my opinion that financial institutions as well as individuals need to keep a keen eye on not over extending credit.
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