Avoid the BIG Financial Decisions Right Now

Hello George: Thanks for taking the time to read this.

I listen to you on am1150 with Phil Johnson as often as I can. I really enjoy what you have to say.

I really need your advice: I live in Kelowna but sold my place just before the covid19 hit and I have to be out in a few months.

I placed an offer on a townhouse pending mortgage approval. My issue is I just lost my job from c19 and I will have to get a mortgage from the “b” lenders. If they even accept me, will a higher interest kill me? Do I kill the deal and rent? That’s if I can even find an affordable place! It’s crazy out there right now. Any advice would be greatly appreciated.   R

Hello, R: Thanks for the note and kind feedback! YIKES! The perfect storm… The great news is that you sold your place and will have money.

I only ever answer questions of what I’d do and don’t have all the details: But this one is easy: RENT RENT RENT

I wouldn’t take on that insane rate AND fees buried in there, and the stress of not having the income. There’ll be tons of other places to buy – don’t sell your soul to do this.

You’re not the only person in this situation, right? So will home values go up or down? Right – so that’s benefit #2.

Will you be back to regular income when you’re less stressed, less in debt, less panicked and under less time constraints? That’s benefits #3-6.

Yes, rent may be so-called ‘wasted’ money, but it buys you peace of mind and no hassles, no 7-10% interest rate, and a BIG penalty to get out of it AND maybe $1k to $2,000 in fees in there.

You need a real lender, and not one that’s taking advantage of you and that can’t happen with no income right now – period. Rates aren’t going anywhere until next year at the earliest, so there’s no rush – no downside – and only benefits to waiting.

IF you can afford it, consider getting your realtor to just ask the buyer if they’d like to move out the possession. The sale is still valid and legal and binding – just changes how long you can stay in there, OR maybe they aren’t fixed on moving right in and will rent it back to you for 90 days? Doesn’t cost or hurt to ask…

Does that give you something to mull? Keep your head up, your stress down and your priorities straight!

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