There could be disagreements between real estate professionals, but not everyone needs to have a house right now. Let’s be honest: some people do not know what it is to own a house.
However, most people will buy a house in the future and will be excellent owners. You will only need to do preliminary work and address a few life choices.
Some of you totally qualify to buy right now: you have good credit, enough assets, and good income. With these qualities, anyone qualifies to buy, would they?
Whatever the case may be, here are some of the reasons why you should consider waiting.
Your work (or income) is not secure.
The economies are cyclical, but they are also subject to the whims of society or technological advances that make them redundant.
Whether you are self-employed or working for a company that appears on the Fortune 500 list, it does not matter. If you do not have the flexibility to absorb a weak year or a few months of leave, then you should consider it seriously.
Be careful when combining the lack of security with any of the two reasons listed below, for which you might want to wait.
You have many debts.
A huge debt makes it difficult to qualify for a mortgage. Place your quota/income ratio in the red zone, makes saving for an initial payment difficult and makes your credit rating lower.
In other words, it takes away the possibility of deciding to buy, since there simply is no such possibility at the moment.
Your assets for a down payment are scarce.
You do not need to have 20% for a down payment. Of course, the property is more affordable due to the lack of mortgage insurance when you have that 20%.
However, you should bear in mind that the purchase of a house does not only include the initial payment and closing costs. The inspection, appraisal, closing and the cost of the move must be taken into account. You may also need new furniture.
If you have to use a credit card for those expenses, you should consider your decision. Do not let the closing process destroy you financially.
No Budget available for additional expenses.
Do not fall into the trap of believing that the mortgage will be your only expense. If you are a tenant, it is possible that the rent is your only expense related to the house but, as owner, you must pay the plumber, the electrician, the maintenance manager, the roofer, the company responsible for air conditioning, among others.
If the house belongs to a community of owners, it will also have related expenses. Make sure your budget has enough Flexibility to meet these expenses.