Home prices hit a new record high. The article suggests choosing specific lenders and loan types. It recommends improving your credit. These are the three strategies that will save you money.
Let's start with the first one. Choose specific lenders. Not the bad ones. The good ones. The ones that charge you less. Revolutionary stuff. Someone wrote this down and got paid.
The second strategy involves loan types. Pick the right loan type. Not the wrong loan type. The expensive one costs more. The cheap one costs less. This required a headline.
The third strategy is my favorite. Improve your credit. Just make your credit score higher. Have you tried having a better credit score? It's like telling someone to save money by earning more money. Flawless.
Here's what actually happened. Home prices went up. They've been going up. They will continue going up. You still can't afford one. These three strategies will not change that fact. But they will make you feel like you're doing something.
Choosing a specific lender means shopping around. Shopping around means filling out applications. Applications mean credit checks. Credit checks mean your score drops. Your score drops and now strategy three is f*cked. You played yourself.
The loan type matters until it doesn't. Fixed rate or adjustable rate. Thirty years or fifteen years. Conventional or FHA. Pick wrong and you lose. Pick right and you still lose but slower. The house costs seven hundred thousand dollars and you make sixty thousand a year. No loan type fixes that math.
Improving your credit takes time. Months. Maybe years. Home prices will hit another record high by then. And another. And another. You'll have an 800 credit score and still need your parents to co-sign.
The article should have been one sentence long: You can't afford it, but here's how to lose less money not affording it.
Photo by Jakub Żerdzicki on Unsplash
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