Former President of the Wisconsin mortgage Bankers Assoc. in 1995 and 1996, Jeff is featured on the radio talk show, "Talking Real Estate" with Jim Geracie on WISN 1130 AM radio Saturday 2-3 p.m. on Sunday noon-1 p.m. Jeff can be contacted by email at jeffc@amerihomemortgage.com or by calling 821-1200, extension 108. Amerihome’s web site address is www.amerihomemortgage.com.

During my 25 year career in working with thousands families who have been interested in buying homes, I’ve come across what I call the "Seven Habits to Avoid" if you want to purchase a home. These habits, often just some of them, cause families to be unable to qualify for a home loan and therefore be unable achieve the American dream of home ownership.

Don’t Budget, Be Happy: This is the one bad habit that leads to almost all the other bad habits that prevent families from purchasing a home. Have you ever gone grocery shopping without a list and when you were hungry? When I do, I walk out with three grocery bags filled instead of one. A meaningful budget, which needs to be realistic and agreed to by all family members, will help you in at least two ways. First, it helps you to identify what is important. Second, it will encourage you to save and provide a plan for you to save money for what it is you have decided is important. For most people, no transaction in their lives will be more important than buying a home.

Over Spending: I like to call this the keeping up with the Jones’. It goes something like this: Well my friends take expensive trips and vacations. They buy big-screen TVs, fancy new cars….. Why can’t I? Don’t worry because with spending habits like the Jones’ you will never own a home anyway. Families who will depreciate in value when you could purchase a home that gains value each year and can be the foundation of a sound financial future. "Just say NO!" to spending.

The Check is in the Mail: Be very, very, and I mean, very careful not to ruin your credit history. I like to call this the "check is in the mail" syndrome. Simply don’t be late on any payment. Make sure you understand that when you borrow money you have to pay it back and on time. The recent growth of credit scoring for lending purposes has exposed borrower weaknesses. If you have had credit problems work with a lender and a credit bureau to clear up any misunderstandings or explain any unusual circumstances. Or be prepared for a much higher interest rate on your loan or, worse, a loan denial.

Overuse of Credit Cards: If your family is like mine, we receive three approved credit card offerings a month. If you want to buy a home, don’t event think about using those cards. Most people purchase things they really don’t need and then, to make matters worse, they carry the balance for a long time. First, "Just say NO!" Second, pay cash whenever possible. Third, payoff your balance each month.

Too Big of an Appetite: I remember a saying my mother used: "Make sure your eyes aren’t bigger than your stomach." In mortgage lending, the bigger the house then the bigger your income, the bigger your down payment, and the lower your other monthly debts need to be. One easy solution is to get re-qualified before you start home-shopping. Visit your mortgage lender to find out what size mortgage you can be approved for, a process that involves analyzing your income, debts, credit usage, other personal factors and current mortgage interest rates to come up with the best mortgage for you. Be realistic in what you can afford. You’ll be the one making the monthly payments and probably for a long time.

Buying a New Car BEFORE You purchase a Home: This habit shows up more than one would think, and sometimes is made even worse by its corollaries: "Buy a Boat," "Buy a Snowmobile," "Buy a Motorcycle." As a rule of thumb, if your consumer debt exceeds 10% of your gross monthly income you may not qualify for a loan. If you are truly interested in buying a new home, live with a used car for a while longer. Remember home first, car (and big toys) second.

Job Changing: Your job stability is a very important factor when an underwriter considers the approval of your loan. In today’s economy this is difficult to control. The longer you are at your job the easier it is to get a loan. Obviously, the opposite is true. If you need to change jobs try to always make more money; get a promotion in responsibilities; or stay in the same industry. Lenders would like to see a two-year history of dependable income. For those individuals considering becoming self employed, it is easier to purchase your home first and then start your new career.