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Factors That Can Delay You from Becoming A Homeowner
July 29, 2019 at 11:49am | Rima Rafeh
Owning a home is a life’s milestone desired by many people. When planning to buy a home, you need to perform due diligence to make a rational decision. Like any other strategic decision-making process, owning a home requires guidance and proper research to invest wisely. For many people, homeownership is a sign of stabilizing in life. It is necessary to understand that buying a home requires significant investment. Assessing your financial viability helps you to decide if you are ready to become a homeowner. Some of the factors that can disqualify you from owning a house include lack of savings, too much debt, or having a lavish lifestyle. Here are several factors that indicate you are not ready to become a homeowner.
1. Having Too Much Debt
You must prove you can meet expenses associated with home-ownership, and also handle other financial obligations to get mortgage approval. Many people willing to own homes, but have significant liabilities, find it challenging to qualify for a home-ownership mortgage. You are not ready to own a house until your debt, and other liability levels are streamlined and manageable.
2. Having A Credit Score That Isn’t Optimal
Before planning to own a home, you should assess your credit history to understand your credit score, which will affect the value of your mortgage pricing. The pricing of your mortgage will significantly affect your monthly income throughout the loan financing period. You can access Bank-rate to review your credit report and score. Your mortgage rates will be higher if your credit score and report is not optimal. If your mortgage rate is high, financing other expenses will be a challenge. It is wise to delay your homeownership plan while you work on optimizing your creditworthiness by timely paying your debts and other liabilities.
3. Having Low Savings
Other than financing your mortgage, buying a house requires a lot of investment to meet several upfront expenses such as closing costs, down payments, moving expenses, and more. You should also finance hidden costs such as assessment fees, homeowners association charges, utility bills, routine maintenance, and more. You should reduce your unnecessary spending to save more before you plan to buy a home.
4. Living A Carefree Lifestyle
It is not worth buying a home if you are frequently moving from one place to another. You need to make a sound decision between owning or renting a home, depending on your lifestyle. Buying a home requires you to live a more responsible life. If you are not ready to settle down, it is wise to consider renting a home rather than buying as you might financially lose while selling your property.
5. Lacking A Clear Home Idea
You should have a clear idea of the kind of home you are willing to buy by considering factors such as the home location, size, number of garages available, and more. Make sure to consult with your spouse and other family members to make an all-inclusive decision.
For more information on factors that indicate you are not ready to become a homeowner, call us now!