Reasons Not to Buy a Home
Home buying can be one of the biggest events and purchases of your life. For many potential buyers, making that commitment can be very rewarding. However, timing is important and knowing when and why not to buy a home can be very important for your financial future. Buying a home before you are completely ready can just put you on the road to financial distress. Therefore, I have some things to look for when you are ready to buy a home that can have you on a more stable road.
Reasons not to buy a home right now:
No Budget – One very important aspect of home buying is having a budget to live by. When you buy a home, you want to live comfortable with what you can afford. So, set yourself up a budget and see how you do with it. If you are able to live with it and live comfortably with it, you can then proceed to purchasing a home. Just remember to keep a few things in mind when creating your budget. Mortgage, insurance, taxes, utilities, all debit payments, charity contributions, and more. Failure to consider all you have going out and coming in can just lead to disaster.
No / Little Savings – If you don’t have any money saved up you should put your home buying decision on the backburner for now. There are several costs that are associated with purchasing a home that include down payment of at least 5%, appraisals, inspections, and more. You should have all this saved up before you begin your home buying journey.
A little savings will help ensure you have a safety net in place to cover all unexpected home emergencies. You don’t want unexpected repairs to put a hole in your financial future. If you save $500 each month, you will have a nice cushion in a few years.
Bad Credit Report – Take a look at your credit report. Credit reports are very important in getting approved for a home loan. If there are errors on your report, get them fixed before seeking a home loan. The better your credit is, the better your interest rate will be. CreditKarma offers free credit reports that do not require a credit card to see your score. This online source will also show you how to improve your credit score absolutely free.
While some of this information may seem gloomy, there really is a light at the end of the tunnel. You can overcome every one of these bumps in the home buying process with a little effort on your part. And when you do, you’ll be thankful because you’ll know that you’re entering into a long-term commitment you can truly afford.
These home buying tips are brought to you by: Erika Rogers – your real estate leader in St. George, UTand surrounding communities specializing in new construction, golf course communities, gated communities, 55+ adult communities, St. George luxury real estate, and foreclosures in all Southern Utah communities.