Question

Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home?
a.
Delay buying the home for a few months
b.
Borrow the money for the down payment and pay it back later
c.
Adjust her budget to save more each month
d.
Take on a part-time job to earn extra income

Answer 1

b. Borrow the money for the down payment and pay it back later

Explanation: Borrowing the down payment increases your debt and often violates mortgage lender rules (they prefer/verifying own funds), raising loan risk and costs. Better to delay, cut expenses, or earn extra income to save legitimately.