The Top Barriers to Buying a Home

Poor Credit Rating

• A poor credit rating can be a huge barrier to buying a home. In order to qualify for a home loan, many lenders seek a Fair Issac Corporation (FICO) credit score between 600 and 700 or higher in potential home buyers. The higher your FICO score, which can go as high as 850, the better the interest rate you'll get from a mortgage lender. Build up your credit score by paying your bills on time and paying down your credit cards so your debt-to-income ratio improves.

Insufficient Deposit

• Certain lenders require a down payment of 10 to 20 percent, depending on your credit rating and the size of the mortgage you seek. Saving up money for a down payment, as well as for moving costs and closing fees, can be a barrier to home ownership. Deal with this hurdle by deciding what your budget will be for a house and then setting a goal of saving 20 percent of the cost for a down payment. Set aside as much money as you can each month until you reach this goal.

Financial Insecurity

• People who feel they can't afford to buy a house may be worrying about the state of their current finances or about the potential of losing their jobs and thus, their future income. According to a 2010 survey by mortgage lender Halifax, 52 percent of respondents said they weren't buying a house because they were worried about losing their jobs. If you're concerned about your current employment opportunities, continue to rent until you feel more secure in your job or shop for a cheaper home that won't overextend your budget.

Shifting Attitudes

• Attitudes about home ownership have shifted since 2008, with certain potential buyers no longer viewing home ownership as a good investment. Certain people don't want to tie up all of their money in a non-liquid asset, while others don't see the point of buying a house that may decrease in value. Ensure that you're making a good investment by shopping for property in areas where prices haven't fallen year-over-year, where there's low unemployment, and where there are few foreclosures.