7 signs you can’t afford to buy a home

by Kathleen Elkins, Business Insider

Making the leap from renting to buying is thrilling and liberating — for many, it signifies the realization of “the American Dream.”

Buying a home is also a long-term commitment, and one that requires strong financial standing.

If any of these signs strike a chord, you may want to delay taking on a mortgage in the near future.

You have a low credit score

Before considering home ownership, you’ll want to check your credit score, which you can do through free sites like Credit Karma, Credit.com, or Credit Sesame.

“The higher your score, the better the interest rate on your mortgage will be,” writes personal finance expert Ramit Sethi in “I Will Teach You To Be Rich.” Good credit can mean significantly lower monthly payments, so if your score is not great, consider delaying this big purchase until you’ve built up your credit.

continue reading »

Discussion

Comments are closed.

Featured