Owning a home is part of our ideal plan; unfortunately some of us can’t buy a home and the reasons why may actually surprise you. Here, now, are five reasons why you can’t buy a home even if you try.
Why you can’t buy a home #1
You can’t afford it
While you might think that you can make ends meet, it is possible that you are only seeing a part of what a home will actually cost you. In fact, it is likely that a lending institution, will let you know whether or not you can really afford it. The last thing you want to be is house poor.
Why you can’t buy a home #2
Bad or no credit history
Late payments on student loans, credit card debts and utility payments will reflect on your credit score. Before you consider getting a mortgage, check your credit score to make sure that there are no errors.
If you have never had any debts or obligations in which repayment must be made, start building your credit with a credit card and perhaps a small line of credit. You need to prove that you can be responsible with debt.
Why you can’t buy a home #3
The down payment is a gift
Even if you have a 25% down payment on the asking price of a home, if your relatives are offering you that money as a gift (thanks mom and dad), there is a chance that the lending institution may take this into consideration and see you as a risk.
If your family gives you the money you need for a down payment, banks and the like will question whether or not you will be able to keep up the mortgage payments over the long haul.
Why you can’t buy a home #4
Your career choices
If your resume is a long line of jobs that only lasted a year, financial institutions may become nervous about handing you hundreds of thousands of dollars.
As well, when the economy takes a hit, employers tend to stick with the senior staff and if you don’t belong in that category, again, lenders may see you as a financial risk.
Why you can’t buy a home #5
If your parents have a terrible credit history, or even your spouse does, chances are you might take a hit because of it. If your parents were late with mortgage or other debt payments, they may consider you a risk as well.
If your financial institution asks for information about your parents and you know they have a bad credit history, you may need to shop around for mortgage approval.
Think you can buy a home?
Building your credit is the first step to eventually buying a home of your own, and if you have managed to build quite the financial reputation for yourself, visit ComFree.com today and see the amazing homes for sale.