While many people still believe that part of the American dream includes buying a home so they won’t have to throw money away on rent each month, others are not so sure. In fact, many people have become very cautious about adding a mortgage to their debt load since it’s become so easy to get “burned” in an economy as fickle as the one we have today. As of the first quarter of 2014, only “74.4 million American households – less than 65% of the country – owned the homes” they then occupied. Furthermore, 20 million more Americans could possibly qualify to buy a home now but aren’t pursuing that option. Does that statistic include you? Should you change your mind and go ahead and buy now? Of course, you’ll have to carefully review all of the relevant financial needs of your family (or individual life) before moving forward with a plan to buy a home. Here’s a look at some of the specific reasons why many people are postponing their decision to buy right now. Hopefully, this information will help you decide if this really is the best – or worst -- time for you to acquire more debt.
Reasons Many Americans Are Postponing the Purchase of New Homes
- Job stability is becoming a bit too rare for many people. When you know your employer could easily replace you – having watched many lay-offs in the past where people never returned, you have every reason to move cautiously about putting roots down in a town that may not be your home for long -- if your employer suddenly lets you go;
- People are becoming much more objective about how expensive it can be to handle unexpected home repairs, on top of making the mortgage payment each month. It can sometimes be much easier to just let landlords handle such problems;
- Many lenders are giving some applicants a hard time because their credit scores are seen as too “borderline” now. At present, most lenders just want to loan money to those with a credit score of at least 720 or higher. “A credit score that would have gotten you a mortgage before 2008 is now below the average rejection score,” according to one recently quoted realtor;
- America’s shaky economy is causing more people to prioritize building their retirement savings instead of taking on a new mortgage. According to one study, only 13% of Americans today still view home ownership as their “top long-term financial goal.” This reflects a downwards slide from 17% back in 2011;
- Of course, due to the recent recession, many people just don’t have the $20,000 to $30,000 down payment that’s often required to buy a new home.
Always be sure to meet with all of your financial advisers, including your Peachtree City estate planning attorney, before deciding to buy a home. Purchasing one at the wrong time can seriously complicate your life -- if you don’t move forward with caution. After all, you don’t want to become one of the 25% of Americans who later come to regret their home purchase.
If you believe that you’re a victim of any abusive debt collection practices, contact the Law Offices of Georgia consumer protection attorney Shane Smith so you can learn more about your rights under federal and state consumer protection statutes. Call (770) 487-8999 today to schedule your free initial consultation.