subject: Job security and purchasing a home [print this page] Job security and purchasing a home Job security and purchasing a home
If you worry about the future of your employment, you're not alone. Employees from all walks of life and in all kinds of careers face a certain level of insecurity about their jobs. When you purchase a home, you are certainly making a long-term commitment, and this can be scary if you think you may not be able to pay for this down the road.
The stress from losing your job can understandably become overwhelming after you have made the commitment to pay your mortgage month after month. However, there can be a great deal of stress associated with the mortgage even if you have not lost your job. The very fear of unemployment can become very worrisome for you and make your new home seem more like a torture device than a dream come true.
Should you refrain from purchasing a home because you're afraid of losing your job? Not necessarily. It's true that no one knows the future, and especially during times of economic uncertainty, there is always a possibility that you will lose your job when you least expect it. However, you also have to be careful about allowing your fears to take over your life and keep you from fulfilling your dream of home ownership.
If you have reason to believe that you may be laid off in the near future, then by all means postpone your home purchase until things settle down for you. There is also the possibility that you will be rejected by mortgage lender anyway if you do not have a good history of stable employment, and this is one way to lessen the risk of purchasing a home that you can't afford. After the financial crisis of 2008, lenders are more likely to deny you a loan based on your income and employment history.
The truth is that you simply have to balance your pessimistic side with a little bit of faith and confidence. If you don't have reason to believe that a layoff is imminent, is should not be paranoid about your future. Please evaluate your overall financial status including your level of savings and retirement funds, your current income and expenses, and the current state of the real estate market.
If the worst happens and you do lose your job, don't give up. We know this can be incredibly difficult especially during an economic recession, but most people will be able to regain a well-paying job based on their skills and educational achievement (and especially if they are willing to gain new skills as well).
