As most people know, for many part of the American Dream involves home ownership. Owning a home can be awesome if everything is in order, but for a variety of reasons, there are some people who simply aren’t yet suited for home ownership.
When I bought my 1st home it was during the time when lenders were pretty much approving everyone for everything. I was not ready for a mortgage, I was drowning in debt, and I had no down payment. Still, I was somehow approved for a home loan. Little did I know that this practice was happening ALL OVER the U.S. and was the start of the subprime mortgage crisis. Since I didn’t have money for a down-payment my real-estate agent suggested that I apply for a grant through CHFA. I did and then they covered the down-payment. (On their site it now says that you don’t have to pay back the down-payment but I did have to pay mine back.) I’m thankful for the help they gave me but I really had no business buying a home at the time. My real-estate agent at the time also told me, “Everyone I know is getting approved for largest loans they can, they’re buying big houses, and they’re just getting roommates to help cover the costs!” Uhhh… thankfully I was at least wise enough to not take that completely ridiculous suggestion seriously.;)
Are you one of these people who has homes dancing in their heads? Do you spend countless hours on Zillow or Pinterest day-dreaming about what it’d be like to have a place of your very own? I was one of those people too. I totally get it.
While you may want to end the cycle of paying rent to someone else so you can start building equity in something all your own, that’s a very big decision to make. If the factors involved don’t honestly line up the way they should, you may not be ready for the investment. Below are some things to consider if you are thinking of becoming a home-buyer.
10 Signs You’re Absolutely Not Ready to Be a Homeowner…
1. Checked In With Your Credit Lately?