Home ownership is many times referred to as the American Dream. It is more and more apparent this day in age though that home ownership is not for everyone. Buying a home is a big commitment, so before making the jump, you want to make sure you’ve covered all of your bases and get information about shared equity schemes.
Low Credit Score
A credit score is a huge deal when it comes to securing a mortgage. The difference between a good score and a great score can be hundreds of dollars a month in additional interest. If you aren’t sure what your credit score looks like you can obtain a free copy from one of the three major credit bureaus. If your credit score is good then make sure you shop around for a home mortgage before settling on something.
Of course it is not something you can foresee, but job stability is definitely something to consider before committing to home ownership. It is a very expensive proposition, even after you have moved it in and unexpected costs pop up all of the time when you own a home. Selling your home shortly after purchasing it will result in a loss of money almost always.
There are a lot of unexpected costs when it comes to home ownership. Aside from that, the costs that go into upkeep and maintenance alone can be pretty significant. It is recommended to have at least 5% of the value of the home for this very reason.
Another factor to consider is the area in which you are looking to live in. Some cities are renter friendly and some are owner friendly. It may not always make financial sense to own especially if you are going to end up losing a lot of money and not gain any real equity doing so. Before making any big decisions, it is a good idea to do a cost analysis to make sure it is a good financial move for you.
When it comes to home ownership, nothing goes further than a little preparation and foresight. Home ownership is not for everyone, so it is a good idea to consider all of the factors that go into the equation before signing any paperwork.