You may want to buy a house but there are several indicators telling you it is not the time. Do you have debt? A bad credit score? You can’t afford the down payment? What about problems with the house itself? You don’t want to find yourself in a “The Money Pit” situation (as great as that movie was.) Is the market too crazy right now? What are the big signs you should look out for?
What to expect
- You are struggling with debt
- Your credit score is low
- You can’t afford a downpayment
- You don’t know what to look for
- You don’t know what the future holds
- Bottom line
Many of us dream of having a beautiful house we can call our own. I mean isn’t that one of the main reasons why we watch Nancy Meyers movies (well that and the vague but catch titles)? Owning a house with a little yard or porch is one of the pillars of the American dream. However, dreams are not reality and you may not be in the right place financially, or even mentally, to buy a house in the near future.
@caitforshort My Nancy Meyers movie houses ranked. Let’s be honest they all deserve the top spot and I’m sorry the pics are so small! #nancymeyers #nancymeyersaesthetic #moviehouse #itscomplicated #fatherofthebride #interiordesign Say So (Instrumental Version) [Originally Performed by Doja Cat] – Elliot Van Coup
You are struggling with debt
If you are struggling with debt, now is not the time to buy a house. Of course, some debt is okay. However, if you have a lot of debt between student loans, auto loans, and credit cards, then it might be difficult to get approved for a mortgage. If you do get approved, you might get hit with very high interest rates, which will make your mortgage too expensive. With too much debt, you will be considered a high-risk borrower, so lenders will be hesitant to move forward on your application.
Instead of focusing on buying a house, focus on paying off your debts as quickly as possible. Cut down your expenses and put more of your income towards your debt payments. See if you can consolidate or negotiate your debts so you can pay them off quicker. Becoming debt free prior to purchasing a home will not only convince lenders that you are trustworthy but will help you feel confident in your decision.
If you are struggling to pay off debt, you have options. Personal loans can be a great way to pay off high interest debts like credit cards. Use Credello’s personal loan lender comparison tool to get personalized recommendations on loans.
