5 Factors That Can Make Buying a Home Impossible
Homeowners in the United States are quite the semi-exclusive group. They come from many different backgrounds and socioeconomic zones, but they each have one very important thing in common. They took the initiative to earn a down payment, get approved for that loan, and purchase their first home. If you are wondering why you aren’t in this group, then it’s time to take a hard look in the mirror and realize why you aren’t currently a home owner and you’ll likely never be one.
1. Bad Credit
Nothing can stomp out a good home buying party like poor credit. Especially in today’s market, where banks are closing their doors to those with questionable payment history, you need to keep your credit score as high as possible. If you are constantly struggling to make your rent payment and you are a couple months late on those credit cards, then you probably don’t have the credit to buy a house. If you don’t fix those problems, you’ll never have the credit to buy a house.
2. You can’t put up enough money for a first payment
Securing a home loan can be much easier if you have some money saved for the down payment. It takes a lot of discipline to save money for future home buying purposes. Most people who don’t own their home spend every dime that they make every month. Just because you have it doesn’t mean you have to spend it. Pay your “down payment account” each month when you get a paycheck. At the end of a few years, you will have enough for a nice down payment.
3. Location, location, location
Some places have more expensive property rates than others. If you live in the heart of a big city like New York City, you are going to have a hard time buying a home. If you refuse to move out the city into a more attractive suburb, then you can expect to be a renter for the duration of the time there.
4. You’ve got bad timing
A lot of home buying is about timing. People with good timing get the best deals and the best rates. Those that come along too early or lag behind have no chance to getting a good deal on a home. You have to learn how the real estate market works and adjust your buying principles to that. Find out what trends are impacting your area’s prices and react when a nice price range is on the way.
5. You are scared to pull the trigger
This is one of the main reasons why some people never own a home. Even though they have enough money, they don’t have the guts to pull the trigger on a home deal. Even though they would get approved for that home loan, they don’t have the stones to go through with the deal. You have to step out on a limb and take a chance in order to own a home. If you can’t handle the risks associated with home buying, you are slave to the landlord.