How to Get Through Common Challenges When Buying a Home
Updated: Oct 26, 2020
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Even when everything goes your way, buying a home is rarely easy. And most of the time, everything will not go your way. In fact, you will likely be met with a number of unexpected obstacles along the way.
Along with working with a home inspection provider like Multi Point Home Inspections, it’s essential to prepare for such challenges beforehand. To help you achieve your dream of homeownership with minimal stress and in a timely fashion, we’ve provided tips for handling some of the most common hurdles in the home buying process:
Poor Credit Score
Bad credit might harm your ability to obtain the mortgage you want.
● Make sure you are paying all of your bills on time, as your payment history plays the biggest role in your credit score.
● Pay off all of your credit cards as soon as possible to bring your utilization ratio down.
● Obtain a credit report from each of the three credit bureaus (e.g., Experian, Equifax, TransUnion), and dispute any errors you come across.
● Work with a debt solutions service in your state to figure out which relief options are best for your situation.
Lack of Job Stability
Lenders will look at your employment history for the last two years. If you haven’t had consistent full-time income for most of that period, here is how you can prove financial responsibility:
● Boost your credit score, pay off all your debts, and maintain a healthy debt-to-income ratio.
● Include all of your assets on the mortgage application.
● Increase your income; use job sites and job boards to find work in your field.
Saving for a Down Payment
Unless you’re a veteran, you will probably have to pay a down payment on your mortgage.
● Work with a qualified real estate agent to help you find a home that you can afford and that meets your needs.
● Open a savings account dedicated to your down payment, and allocate funds to it each month.
● Review your budget, and look for ways to reduce your monthly expenses.
● Ask to borrow money for your down payment from a family member.
● Declutter your current home, and make a pile of items that you can sell online.
You can expect to encounter obstacles when you’re buying a home. The key is to get ready for them ahead of time. Upping your credit score, becoming (or staying) financially responsible, and putting money towards a down payment are all great ways to start. And remember to turn to Multi Point Home Inspections for your professional home inspection, as well as valuable insights and information.
Natalie Jones of homeownerbliss.info