7 Reasons Why You Shouldn’t Buy a House in 2017
Buying a home is NOT for everyone. We all have goals in our life and one of the biggest ones is buying a home.
However you really need to be ready be focused and be committed. It is a long process and it can wear you out emotionally. You and your family must be on the same page if you are single then it’s much easier to decide for yourself but if you have a baby, a husband, a wife or maybe in-laws that will be moving in with you then it’s a family affair.
If are you’re thinking about buying a home in 2017, December is the perfect time to “warm up” for the house hunt so you can hit the ground running in the New Year. In the event you feel you shouldn't buy a house at least get your feet wet and research to see what options are available so you can make a sound decision on what is best to do for YOU.
1. Your credit score sucks.
Seriously if you have a credit score between 400-570 DO NOT BUY A HOUSE. Well, let me back up make sure you check your credit score first to see where you stand. A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better. If your credit score falls short, get busy repairing it. Correct any errors that might be on your report, start paying all your bills on time, and get your credit limit raised. Lots of people ask me "if I have a bad credit score can I buy?" and the answer is always NO. Do your homework on your report and get all your errors disputed and fixed. Even if you do not want to buy a house our country is bases everything on a credit score. From buying a car to getting a credit card.
2. You have maxed out your credit cards.
Do yourself a favor if you have maxed out your credit cards DO NOT BUY A HOUSE. Credit cards are the number reason why you shouldn't. Make sure you control the addiction of buying things on credit trust me one of the reasons I filed for bankruptcy was because I maxed out all my credit cards. When I filed for bankruptcy it was over $500,000 and part of that was because my credit cards were maxed. Don’t open new credit cards - Opening new credit may hurt your chances of getting a mortgage, or at least of getting the best rate on a loan.
3. Your not willing to sacrifice on saving money.
You’ll need a sizable amount of cash to buy a house. There’s the down payment to consider, closing costs, moving costs, attorney fees, appraisals, mortgage application fees etc. You should also set aside money for unexpected repairs and costs. When you buy a house its typically for 30 years or at the very minimum 15 years in those many years you live in a home expect maintenance fees and maybe some remodeling costs. If you rather travel, buy expensive things like a yacht, or just spend it on yourself then DO NOT BUY A HOUSE.
4. Can't deal with other people.
When you buy a home there are many moving parts you must deal with other people such as a real estate agent, attorney, home inspector, a lender. Lots of communication has to be done throughout the transaction and everyone has different personalities. If you are not a people person you might have a little bit of trouble so therefore DO NOT BUY A HOUSE. If for any reason you do decide to buy a home interview people. Make sure they are a right fit for you. If your neighbor, relative, or friend of a friend happens to know (or is) a real estate agent, lender, attorney etc. that’s great. This person might be the perfect agent for you. But you owe it to yourself to shop around. Look for that someone that is knowledgeable, good, integral, and can assist you in reaching the goal of homeownership
5. You don't care about interest rates or anything involving real estate.
If you honestly don't care about what the heck is going on in the real estate industry from mortgage interest rates to checking out homes online then maybe home buying is just not for you. Or maybe you are just not ready right now. You might be in a stage in your life where are you not thinking about these things and you could careless what is happening in this field. If you see yourself not doing the research or getting restless about researching these things then DO NOT BUY A HOUSE. It might stress you out and your anxiety level will be through the roof. It's best to do it when your mindset is ready for it.
6. Not working.
This might sound super silly to say but I get this question all the time. What if I am not working can I buy a house? Umm the answer is no. Although you might be getting supplemental income from you husband or wife it doesn't allow you to qualify for a home. Now, having said this if you are retired and get a pension check you CAN buy a home. You see a lender will be asking you for the following items.
- Tax returns for the past two years
- W-2 forms for the past two years
- Paycheck stubs from the past few months
- Proof of mortgage or rent payments for the past year
- A list of all your debts, including credit cards, student loans, auto loans, and alimony
- A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts
So you need to show proof of income with your tax returns. That also goes for people that get paid cash. If you can't prove it DO NOT BUY A HOUSE. Even if you are self employed you still need your profit and loss statement and your income tax return for the business.
7. You do not have a social security number.
There are many people out there that do not have a social security number or a fake one. Yes some people work with fake social security numbers. If this is you DO NOT BUY A HOUSE because you will not be able to. However, having said this there are many people that have an I.T.I.N. If you have this you can buy a home. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX. Any individual who is a U.S. Citizen, a permanent resident, or a temporary alien resident who is authorized to work in the United States, must have a social security number. ITINs help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs). For more on this information you can go to https://www.irs.gov/individuals/general-itin-information
If you feel have more questions on these 7 reason why not to buy a home in 2017 please feel free to shoot me an email at [email protected]