Buying a home is an enormous decision that can take a lot of thought and research. While some people may find the market easy to understand, most people will face obstacles as they try to make their big decision. Knowing what they are can help you better prepare to overcome them—potentially eliminating them as threats altogether.

Credit Worthiness

It comes as no shock that debt can ruin your ability to buy a home. From a bank’s perspective, according to The Mortgage Reports, if you can’t be trusted to take care of your credit cards or vehicle payments, why would they trust you with a larger investment? Having bad credit can be cured, but it is a long process that you need to work on.

First, you need to pay off any debts that you owe. This will improve your FICO score that banks view when they are deciding whether to loan to you. Some banks or credit unions will show your score free of charge, helping you know what habits to change to improve your trustworthiness.

Affordability

The next barrier that prevents most people from buying a house is its affordability. Homeownership is not nearly as cheap as it once was since the housing crisis in 2008, so many young people are stuck relying on landlords. According to Podium, nearly 70 percent of Millennial renters say they will always rent because of a lack of affordable housing.

However, any financial goal you want to attain can be achieved—especially this one. Talk with a financial advisor to find out how to budget for a home. Houses are great investments for the future and can further your independence.

Inconsistent Employment

In some cases, the bank will ask for a record of your employment. If you have a consistent job that pays well, they will feel more confident in offering you a loan. However, inconsistent or odd jobs can make you less dependable. It increases the likelihood you will get turned down.

But this is not always the case. There are ways to get a mortgage without proving you have a consistent income. According to Divorce Mortgage Advisors, if you can show them your tax documents, you can prove to them that your inconsistent income does not necessarily detract from what you have made. This turns you from an unlikely candidate to a promising one.

While obstacles can make buying a home frustrating, it is worth it in the end. You can have a home to raise your family in, you can develop better financial habits, and it is easier to climb up the housing market over time.

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