Most people who have attained the working-class status desire to become homeowners. Home ownership is significantly advantageous as opposed to living in rental houses and apartments. Few people, however, realize their dreams of becoming successful homeowners. The many that don’t is normally as a result of various critical factors and situations as hereby outlined.
Many aspiring homeowners normally facilitate their dreams of buying homes by applying for mortgages and other financial solutions. To successfully qualify for a mortgage, however, one has to have the right credit score. Bad credit score normally limits many people’s ambitions of successfully applying for mortgages; thereby hindering their dreams of becoming homeowners.
Lack of job security
Most aspiring homeowners are normally scared of the absence of job security, especially in instances where they have to secure mortgages to buy their homes. Lack of job security causes real fear among such persons as the risk of getting into foreclosures over unpaid mortgage can be quite high.
Mortgage-issuing institutions and banks that can facilitate home-owners to purchase homes normally consider the applicants’ debt ratio before successfully processing their applications. In instances where the debt ratio is over 50%, most financial institutions tend to decline loan and mortgage applications. Basically, an aspiring homeowner with a high debt ratio does not qualify to be financed for a mortgage.
When renting is 50% cheaper
Sometimes, the prices of houses in the market are normally so high that the cost of renting is significantly cheaper. An individual will, therefore, rather pursue the option of renting a house as opposed to pursuing a mortgage financing to buy the same. This happens in cases where the cost of renting reduces while the cost of buying houses increases.
Being on the move
Sometimes, aspiring homeowners get discouraged from buying houses in cases where they are constantly moving from one area to another. This commonly happens in cases where an individual’s job necessitates them to be on constant movement and relocation.
In some cases, the real estate market can undergo certain critical shakeups that destabilize the entire sector. Such shakeups normally discourage financial institutions from investing in the provision of mortgages. It also leads to real estate companies to delist their properties from the market, thereby leading to a sharp decline in demand and increasing housing market prices.