People used to appreciate the comfort and stability of their homes as well as living in a good neighborhood for a long time. Why? Because people like familiar faces around themselves in any critical situation. This is the prime reason why many people love the idea of owning their house rather than spending funds towards renting.
But owning a home is not at all easy; few things may reduce the chances of purchasing a dream house.
Here are 7 reasons why Americans face problems to buy their dream house:
1. Too much debt burden
Too many debts denote your debt to income ratio is very high. Lenders may reject your loan application if you pay more than 50% of your total earning towards monthly bills.
In this situation, paying off some of your big debt amounts may ease up the process for the time being.
2. Having bad credit
Despite having bad credit (FICO score below 620), you may get approved for loans. But, that money will surely come with a very high-interest rate. So, people with bad credit may need to wait for a while and try to increase the score, or take the risk for applying a mortgage.
Practically, it is wise to fix your credit score before applying for a good loan.
3. Not having enough money for down payment
You may need to pay a good amount towards the down payment for most of the conventional home loans. It is seen that people, who can afford to put down 20% or more as down payment, are getting the best available rates on mortgage loans. People who can’t afford that money might go for private mortgage insurance.
4. Uncertain job
If you’re getting uncertain about your job, you may not want to opt for a loan. That’s why many US citizen avoided buying a house. If you have any confusion that in the coming days, you’ll not earn as much as you earn today, you’ll postpone your home buying plan.
5. Not buying the home just because your friends aren’t purchasing one
Some people ignore the opportunity to buy a house just because their best friends aren’t buying one. They don’t just push themselves too far to buy a new home.
However, it’s not necessary to do the same thing what your friends are doing. Your friends might have their own financial issues and a different mentality.
If you feel that it’s the perfect time for you to become a homeowner, go for it.
6. You tend to travel a lot
If you need to travel a lot and spend less time at home, maybe it’s not the good time for you to purchase a house. People who have a job that requires shifting from one place to another, from city to city, home buying might not be their best option.
People purchase homes to live there for a while and to build equity in that property. If you think that buying a new house can’t serve both the purpose for you, don’t go for it.
7. You usually not like being at home
If you don't enjoy staying at your home, spending quality time with your family, or just cherish alone time by listening music, it doesn’t make any sense to engage your hard-earned money on something that’s useless to you.
In that case, you can go for an apartment or condo.
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