The Finance Blogger

We received a question about home equity loans in Akron, Ohio from a reader and will answer his questions in our next post about Home Equity Loans. This client has provided a good deal of information, but we are not sure what their question really is. Perhaps they are asking how to avoid a repeat of the housing disaster in 2008 were many people lost their homes and a great deal of money. Many not only lost their homes, they also lost all of the contents of the homes, including furniture and any clothing they had left in the place.

Question to Debt Counselor about Home Equity Loan::

We live in Akron , Ohio and are planning to purchase a home in the near future. Housing prices are at the lowest we have ever seen and we think that it is time to purchase a home. We have saved up a down payment for the purchase and have steady jobs that pay well. We both work in the auto industry which as you know has rebounded significantly in the last two years. This is the best time for us to purchase a home since we also want to start a family.

Do you currently have a mortgage? :: No, we currently rent a home

Home/Mortgage Loan Amount :: the house we plan to purchase is ;listed at $150,000 and we have a down payment of $20,000 so we need a home equity loan of $130,000

Other Loans, Including Credit Cards:: We have a number of credit cards, all of which carry a zero balance. We also have a car loan, with a payment of $125 per month. It will be paid off in less than 2 years

Are you employed and for how long:: Both my wife and I are employed in the auto industry and have been with the same company for 8 years. We were laid off for 6 months during 2008 while the industry reset itself and then were hired back and working full time ever since

Your credit rating to be – excellent, fair, or bad? :: Excellent

Gross Amount Per Paycheck :: $3500 / month combined income

Do you agree to have this information published online, without your PRIVATE information of course? :: Sure

Extra information here please (some detail)::

We believe we are excellent candidates for a mortgage and are not over extending ourselves. We have purposely decided to purchase a home that is at a lower cost than what we think we can afford to ensure that we do not over extend ourselves.

Although we are working now and have been for the past 3 years, we learned a good lesson from the 2008 disaster. We do not want to repeat mistakes made by others by over extending ourselves. With our savings and work ethic, we know we can afford this home no matter what the economy throws at us. Please advise regarding the best approach to take regarding a mortgage for the home we want to purchase

If you have a question about debt, loans , mortgages or other financial situations, please feel free to leave a comment with as much detail about your situation as you can. We will try to answer your question in our next post. Click here for more home equity home loan details.

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