5 Reasons NOT to Buy a Home if you Live in Denver CO
Buying a home is a big deal. And who doesn't want to buy a house and put down roots in Denver, Colorado?? There are times when purchasing a home does not make sense. It's not just about the cost of the house; it's about the costs of moving, maintenance, taxes and other expenses. So before you decide to buy a home, take some time to think about whether it's right for you.
Five Reasons NOT to Buy a Home:
1. Don't buy if you've had recent credit problems.
If you've been late on payments for any reason or have had an outstanding debt that has gone into collections (and it hasn't been paid off yet), then you may not qualify for a mortgage loan right now.If you've had a bankruptcy on your credit report, it will stay there for at least seven years. That's because the law says that you can only file for Chapter 7 or Chapter 13 bankruptcy once in your lifetime (unless you have extenuating circumstances).
2. Reconsider buying if you're getting married soon (or divorced).
Don't move if you know that you want to get married in the near future — marriage usually requires a move because spouses don't want to live apart from each other or with their parents anymore! The purchase decision should be made together. And if your spouse has bad credit, don't expect him or her to help pay off any debts on your home purchase.
3. Hold off buying if you have no savings or assets that can be used as collateral for a mortgage loan (cash reserves).
If you have no savings or assets that can be used as collateral for a mortgage loan (cash reserves), then you are not in a position to buy a home. You may not have enough income to afford the monthly mortgage payments plus all other expenses associated with homeownership (insurance, taxes, upkeep).
4. Now is not the time to buy if you will want to move again soon — or at least within the next few years.
Buying a home is one of the biggest investments most people will make in their lifetimes. If you aren't planning on staying put for at least a few years, then it probably isn't worth it to buy right now.If you buy a home and then sell it within 2 years, the IRS will tax you on your investment. That's because they see it as a short-term investment, not long-term property ownership.
5. Don't buy a house if you're not sure if your current job is where you want to stay.
Job security is a big concern for many people, and it's one of the reasons why they don't want to buy a home. If you aren't sure that your job will be around in five years, then buying might not be the best move right now. Also, changing jobs soon could mean you have a different commute. This could result in a long commute in a few years that you wouldn't have imagined or even accepted right now.
If you read through this and think "I've got this!" then maybe it's time for you to start the buying process. We've got resources for you - including lenders that can get you pre-approved and ready to shop! Reach out and let's get started! 303-884-2738. Don't miss out on our next blog and Don't Try to Time the Denver Market.
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