Not everyone should buy a home. While most folks appreciate the stability in having their own real estate, some others are better geared towards renting or leasing, instead.
For instance, if you have a bad credit rating or credit report, then you’re not going to get a good interest rate on a home loan. If your FICO score is below 620, for instance, you would practically have to settle for interest rates by predatory lenders, which is not good.
If this is the case, fix your credit score first before applying for a loan! A few late payments are usually enough to have you disqualified from a loan, so watch out!
Also, if you have a high debt ratio, it might be best to lease or rent instead of going for a new loan. Consider your mortgage payment, plus taxes, divided by your monthly salary. And add that to your monthly debt payments, divided by your salary. A 50% debt ratio is high, and should make you reconsider going for that loan!
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