DEBT FREEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

This is Nathan writing you all to say.... WERE DEBT FREEEEEEEEEEEEEE!!!!!!!!!
I canceled the credit card today. Student loan is payed off. Medical bills paid off (so we own the kids now ;-). We have a new peace in our lives that is indescribable.

Let me say this to all you young folks trying so desperately to buy your first house... if you don't have the following you are STUPID to think you can afford a house (I am not going to mince words because I believe this is what you need to save your own butt when hard times come. If you think hard times won't come and you have it all figured out then go do your thing but don't say I didn't warn you. So here is the list...

1. No debt. This includes student loans, credit cards, medical bills, car payments, boat payments, vet payments, plastic surgery payments... NO DEBT.

2. 4-6 months living expenses in a liquid account that will not be used for anything except an EMERGENCY.

3. 10-20% down payment. This is crucial. I know some of you will say "the banks will loan 100%" true but if you suddenly have to sell your house and the market is down you will be stuck paying the difference to get out from under the house. Also a down payment shows the lender you are serious about your decision to buy and helps expedite the closing process. Less risk for lender equals a better chance of a loan.

4. Your mortgage payment should be less than 25% of your take home pay. Some may see this as not important but in reality it is easier to ride out storms with a manageable mortgage. If too much of your rescources are tied up in your house payment life is going to suck hard.

5. Don't get conned into the "now is the best time to buy." Sure the government will give you 8000 dollars if you are a first time buyer but if the housing market drops in the mean time have you really gained? If you can't afford the payments in the first place (see 1-4 above), then you can't afford the house evn if the government was giving 10,000 dollars it wouldn't matter because you can't afford the house now. Save up and save your life.

Folks, there are bennefits to renting. If the roof needs relaced at 8-10k you don't need to worry about it. If the $2,000 hot water heater goes out the landlord covers it. I could keep going but I think you get my drift.

Lindy and I had plenty of equity in our house we sold. We chose to give it up in favor of being debt free. There is a peace to beautifull for words that has come from that descision. So in a way we now have a fresh start. We now have a way to save for a house and retirement and the kids college funds. We are living like no one else so that someday we can live like know one else. That quote comes from the Dave Ramsey Show. Dave Ramsey didn't get us out of debt though our choices and grown up descisions have helped us to be debt free. Now our future sudenly looks very bright and wide open.

Thank you for reading and may God bless you all,
Nathan Labunski