For many people, moving from the renting stage to the homeowning stage is a big priority. However, if you are facing unemployment, your work status could negatively impact your ability to pass all the checks necessary to get to the buying part of the process. However, there are still some ways that people dealing with unemployment might be able to get the home they want. Here are some tips that can help you buy a house when unemployed.
Get a Helping Hand
Sometimes owning a Condo, small house or mobile home is actually cheaper than paying rent. In this case, buying might be in your financial best interests, but the trick is going to be getting the money up-front. Perhaps you can get a parent or relative to be your banker and loan you the money to buy your house and they will make the terms flexible enough get you through this tough time of unemployment. But for both of your protection, you should have a written contract with the terms of the loan clearly spelled out.
If you are moving into a new home with a roommate, they may have less debt or better credit than you do. In these cases, it may be a good idea to let that person take the lead on things like a mortgage application. Your unemployed status should not be a factor that works against you if it is the partner signing the agreements. But, once again, if you are going to be a co-owner be sure to get the terms of your agreement in writing. No matter how friendly you are at the moment, you don’t want to end up in court in a “he said she said” situation. If you are making payments to your roommate be sure there is a written record of every payment you make and whether it is an ownership or rental situation.
Purchasing a home has long been a big financial undertaking. For many, the thought of a looming home loan becoming more and more swollen with interest over the next 20-30 years isn’t exactly the most alluring aspect of having your own hearth to decorate each holiday. In short, it’s a decision you can drag your feet to make; combine that with the fact that the market is currently tipped in favor of buyers who have more time and reduced pressure to find a quality, affordable home without fear of their options disappearing. In this buyer’s market, families looking for a new home know they have the luxury of more and better options when it comes to financing and overall home prices and they’re taking their time. According to CNN Money, home prices are down on a national average of 34% (although