When You Should Wait to Buy a Home

Owning your own home is the American dream. The white picket fence, the family, and the dog are a common dream. Once you're established in society, it just seems like the thing to do. Here are some situations that indicate that you should wait to buy a home:  

Your Credit score is less than the high 6oos.

In this case, you should wait. Unless you can purchase from someone who isn't going to check your credit, which isn't common, you need to have a high credit score to avoid a high interest rate. When it comes to managing a mortgage, interests rates are extremely important. The good news is there are plenty of free options available to obtain your credit report.  

You don't have the money for a 20% down payment.

Don't dive in without a 20% down payment unless you've seriously considered the weight of PMI. You will be thankful you waited when the time does come that you have enough to get into a traditional loan.  

Your income isn't more than 300% of the anticipated monthly mortgage payment

If you can't afford it, you can't afford it. Don't buy before you're ready. Without a sufficient income, you're wading in deep water. Yes, you've been paying rent, but you likely didn't have all of the required insurances and interest payments to worry about. Start saving, keep it slow and steady, choose a reasonable amount of money to save from your income and set a goal date to reach the amount you will need.   

Conclusion

These are situations to become aware of when buying a home. If you match any of these, don't panic, there are reasonable solutions to all of these problems. Some may take more time than others, which is why we recommend waiting to purchase a home if you fit any of these.If none of these situations apply to you, you may be ready to take the plunge. Good luck, and stay informed!