Expert: Dick Dennis - 8/6/2006

Question
My girlfriend and i have been together for a year, and we plan to get married.  Her father recently died and left us a very large inheritance, around 1 million.  We plan on buying a home for around 100,000-150,000, and I was wondering if it would be better for us to buy it outright or get a loan and make payments.
I have heard arguments for both options.
I would love to pay it all and not have to pay any interest, but is it worth making payments to improve my credit?

Answer
To improve the status of your credit, I would get at least a loan equal to one/third of your purchase. It is a loan you can handle okay and it should help. If you have a good income, paying interest is deductible on your income tax each year.

Just be aware, Mike, that with the money coming from her family this whole situation may wind up blowing up. I certainly hope that it never does, but I have seen too many times where one of the to-be-marrieds decided to walk out on the situation.

I strongly suggest you both sit down with a REAL ESTATE attorney to make sure that BOTH of your interests are protected in your unique situation.

I do wish you well.

Dick Dennis           dixiedee13@aol.com