Debt

Reader Question: 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?

dave_ramsey  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.

Homeownership 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!

Dave Ramsey

Dave is the author of The New York Times best-selling book Financial Peace. He is also the host of the nationally syndicated The Dave Ramsey Show, and is a regular guest on television. All of his financial counseling is based on biblical truths. You can hear Dave from 9 a.m. to 11 a.m., weekdays online at www.daveramsey.com. Send your questions toaskdave@daveramsey.com. He resides with his wife Sharon and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

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