Mortgage companies must look at the overall picture in helping you qualify to purchase or refinance a home. If you think you might not qualify or there’s something in your financial picture, the lender still must look at the overall financial scenario to see if they can help you. So, if you think that there’s something challenging lurking in your financial past here are some things you should know going forward.

So, you’re not sure about whether you’re going to qualify to purchase or refinance a home. You’re just not sure that for whatever reason the mortgage you’re looking for is going to work out. So, you contact a mortgage company tell them about your scenario, hope for an answer that you’ll qualify, then decide about submitting your application paperwork. Sounds logical right? Well, not really, here’s why. Yeah, there’s mortgage financing in 2021 and it’s been this way for several years is incredibly bureaucratic and very complicated. People who think they won’t qualify end up qualifying. People who think they will qualify sometimes don’t periodontally qualify. It’s a mixed bag.

The “I don’t want to waste your time” thought process is a dated, inaccurate way of looking at mortgage financing. Contacting a mortgage company to tell them about your story, only to then not supply them an application and the requested paperwork they need to help you not only wastes their time. But you’re also wasting your time talking to a company that you’re never willing to supply your paperwork to or submit to a credit check. Generally, when a mortgage company hears and sees this, it’s an automatic red flag and it is a waste of their time in talking to someone who’s never going to supply the paperwork that they need to help.

Maybe you are self-employed, and you think that you don’t show enough income because of your taxes? That could be true, supply the paperwork and submit it to a credit check.

Maybe you have a brand-new job, and you think that you don’t have the income or the history needed to qualify for financing. That could be true, supply the paperwork and submit it to a credit check.

Maybe you’re just not in a hurry and you’re just poking around to see what the numbers might look like or you’re looking for a strategy? Great! That could be true, supply the paperwork and submit it to a credit check.

Maybe you’re worried that you think your credit score is going to go down as a result of applying for a mortgage. Here’s the reality of it, if you think that’s the case and your credit score is more important than being able to purchase or finance a home. To purchase a new home or put a roof over your family’s head or lower your fixed housing expense then you have a decision to make. Submit to a credit check and supply the paperwork or don’t get ahead. Unfortunately, that’s pretty much what it boils down to. 80 plus percent of the time, applying for a mortgage does not specifically tank your credit score.

At the end of the day, the “I don’t want to waste your time because I might not qualify”, what you’re essentially telling a mortgage company is I want information but I’m not willing to give you any more information that you’ll need to help my situation.

A better way to do this would be to supply the information the mortgage company needs, and fill out the paperwork with the understanding that the mortgage company may not be able to help you or that they can’t help you. But they can at least create for you a plan so you can qualify in the future. A good mortgage company takes a holistic approach to it and the “if I can’t help this consumer right now today let me give them a plan so they will qualify in the future”. That’s the sign that you have someone that knows what they’re doing. Working for you on your behalf usually, people like this have individual relationships, and a tip is typically to have lots of online recent reviews of other families. Potentially that was in your same situation who they were able to successfully help. Something to think about the next time you say that you don’t want to have your time wasted the reality of it is you have to bite the bullet and submit a credit check and provide all the information the lender needs to help you be successful.

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