Search: I Can Fix Up My Home
index sitemap advanced
search engine by freefind

www.icanfixupmyhome.com home page Read the icanfixupmyhome.com blog Read electrical & appliances articles Read green building & energy efficiency articles Read home interior articles
Read home exterior articles Read drywall and framing articles Read plumbing articles Read painting and wallpaper articles Read tools and woodworking articles

How Bad Credit Can Stop You from Buying Your Dream Home


Find a General Contractor or a Subcontractor Like a Roofer, Plumber, Electrician, or Painter

© 2012 by Angelina J.; all rights reserved; content may not be copied, rewritten, or republished without written permission.

Real estate for sale; photo © Kelly Smith
Real estate for sale; photo © Kelly Smith



This article was updated on 06/25/20.
Bad Credit is the one thing which we are all afraid of. It is kind of like the thing that will throw a person in the deepest, darkest pit where returning back to civilization can be hard.It is actually the difference of getting the things you want in life and settling for something else.

, on the other hand, helps you acquire and attain things that were previously not within your grasp. It makes it easy for you to reach your goals and also allows you to benefit from the many opportunities that were not available before.

Declining Home Ownership

Results of different government surveys (back in 2010) have shown a fall in the number of people who have bought a home. According to the U.S. Census, between 2000 to 2010, there was a 8.8% decrease in home ownership in the general population.

That housing meltdown had exacerbated the situation with foreclosures sky rocketing. However, the dream of being able to buy a home is still alive in many individuals as many do not prefer renting. Under President Trump, ownership has not only rebounded but skyrocketed. According to Trading Economics, "Home ownership rate in the United States increased to 65.30 percent in the first quarter of 2020 from 65.10 percent in the fourth quarter of 2019."

Home ownership in the US, 2017-2020

People who have bad credit do not have to lose all hope. There are different financial companies that can help you out. As always, verify that they are legitimate, credible, and honest before doing any business with them.

The Real Cost of Owning a Home

Many people who do not have a good credit score have shown an urgent need to buy a home. They usually ask questions like, “Can we buy a home anytime soon?”

Instead of asking such a question, it would be wiser to ask, “Will I be able to make monthly payments for the next 30 years?” Or, “Will I have a stable cash inflow for that long?“

Yes, there are many rewards of home ownership, but there are also a few risks involved. These days, you need to make a significant down payment unlike before when you could qualify for a home loan easily without much of a down payment.

There are many other costs you must consider when you buy a house. Some of these are:

  • Closing costs
  • Renovation material and labor
  • Property tax
  • Routine maintenance costs
  • Homeowners insurance
  • Homeowner association fees
And unlike renting, you will be liable for repairing or replacing appliances; you can’t call a landlord’s maintenance man. Whereas, if you were living on rent in an apartment, you would only lose your security deposit and there would be no record of it on your credit report.

Your Credit Score is Critical

However, when you lose a house to foreclosure, your credit report takes a turn for the worst. You will not be able to realistically get a mortgage loan for another seven years at a minimum. Some people might find it better to put off buying a house till their credit score improves. It is also a good idea to avoid the purchase if you are not able to secure a good, affordable mortgage loan or if the interest rates offered at the moment seem too high.

If you buy real estate today’s economy, you will certainly be happy with the current low interest rates. Also, some realistic house prices make up for the rising interest rates; and when you look at it on the whole, it is not a bad package.

If you have a bad credit score, it will affect more than your ability to buy a house. When you apply for a white collar job, the extensive background checks include checks related to your financial standing.

If you do not have a good credit history, you might not be able to achieve the goals you have set over the years. You might not even be allowed cell phone service if you have piles of bad debt. Not to mention you will not be able to buy a car if your credit history shows a continuous list of bad credits.

In other words, you don't only have to worry how bad credit can stop you from buying your dream home. It can shackle you in many aspects of your life.

How to Get Your Credit Report

According to the FDIC, you are entitled to one free report per year from each of the “big three” reporting agencies. They are:

There’s one more thing you need to do no matter what your score is. Help protect yourself from identity theft. Don’t wait, join LifeLock or a similar service.

Working with a Financial Advisor

If you are searching for good advice on how to handle your finances and to improve your credit score, it is time that you turn to someone who knows how to handle finances. Your credit report needs to show signs of improvement before you can ask financial institutions for loans. You also need to adhere to the advice given by your financial adviser.

Debt relief advice companies can be worth talking to. You should give them a complete detail of your credit history and work with them to figure out how you can improve your bad credit score and buy your dream house.

About the Author:

Angelina J. provides expert opinion on the various debt settlement problems individuals face during their lives. She realizes the impact this can have on their expenditure patterns and the economy overall. For this reason, she writes and encourages people to spend their money rationally so that they don’t fall in debt in the first place.

Visit Kelly's profile on Pinterest. />

Resources:

Related Articles

About the Webmaster:

Photo of Kelly R. SmithKelly R. Smith was a commercial carpenter for 20 years before returning to night school at the University of Houston where he earned a Bachelor’s Degree in Computer Science. After working at NASA for a few years, he went on to develop software for the transportation and financial and energy trading industries. He has been writing, in one capacity or another, since he could hold a pencil. As a freelance writer now, he specializes in producing articles and blog content for a variety of clients. His personal blog is at I Can Fix Up My Home Blog where he muses on many different topics.

Did you find this article helpful? Thanks for supporting this free site with a small donation!

HTML Comment Box is loading comments...

Website © 2008 KSmith Media, LLC; all rights reserved; content may not be copied, rewritten, or republished without written permission. Webmaster’s Google profile












Looking for more great content? Visit our partner sites:
The Green Frugal
Running Across Texas

As Featured On Ezine Articles

Do you need an article written? I offer blog-writing services at a reasonable rate. Ask for a quote!

Return to the Interior Articles

Return to ICFUMH Homepage