Most people given a choice would desire to purchase a home, arguably, given their financial situation, and their ability to handle a monthly housing payment. Oddly enough, there are times from a lender’s perspective you might not get a home loan and it has nothing to do with your credit score, credit, history, income, or down payment. Here are five things preventing you from successfully getting a home loan and what you can do to get around them…
- Your inflexible Let’s say you’re getting prequalified to purchase a home and your cash, credit, income, and down payment support a purchase price of $500,000. Let’s the house you want is $600,000 and it’s just too far out of your range. You can afford something less such as a condominium for 400,000 or less, however, you really want to buy a home. Maybe it means having to borrow on your 401(k), but you just don’t want to do it just due to your personal preference even though you can and it will not hurt your financial situation. It also might mean having to ask mom or dad or brother or sister or grandma or grandpa for a down payment, but you don’t want to do that because you want the pride of ownership to do it on your own. Simply put you’re being inflexible. Real estate is like life series of negotiations and trial and error so you can ultimately make the most informed decision for you and your family.
- You don’t want to ask for help even though it’s available. Pride of ownership is a big deal to be able to say you did it on your own is a good thing however when push comes to shove, particularly if you have someone in your life, who can help you ask them for help it’s something you might have to swallow if you’re desiring to purchase a home and it might mean having to pony up the courage to ask mom or dad, or grandma or grandparent to cosign on your loan if you can handle the payment,t swallow your pride because your pocketbook will thank you over the course of time.
- You’re unorganized in order to get a loan to buy a home you need to be able to provide paystubs, W-2s, bank statements, and in some cases tax returns. If you don’t know where any of the stuff is, and you’re trying to borrow money, it will be problematic. The reality of it is that you need to provide these things to the lender so they can determine what you qualify for and give you choices and options as relates to being flexible. The more paperwork you have and the more information you tell them the easier it will be for them to help you be successful.
- You’re only available after 5 PM. This one hits home for a lot of people because everyone works Monday through Friday from 8 to 5. Mortgage companies also work Monday through Friday from 8 to 5 in unison with most people’s daily schedules. If you’re only available to get preapproved with a lender or work on the conditions of your loan process after 5 PM and you were completely unavailable through phone email or text until 5 PM on a daily basis you’re setting yourself up for failure. That’s just the reality of it. If it’s important to you, you’ll find a way.
- You’re indecisive You get preapproved, you begin the home search, you’re super excited you look for several months maybe even several weeks, and then for whatever reason, you just stop you just get discouraged. You start to think about it and perhaps even overanalyze it to the point where you just decide it’s just too much that’s OK. Maybe it’s just not the right time for you and that’s a possibility that can only come with time but is definitely a reality for some families. It’s just a fact however if you want to buy a home, you need to move out of the on-again-off-again approach. The best course of action is to get preapproved immediately to get a framework for what you can afford today and or have that lender create for you if they’re willing to, a long-term plan to help you and then look for houses in alignment with a payment supportive of your monthly budget. That is the best course of action for success and long-term prudent financial planning.
If you’re thinking about getting prequalified for a mortgage or want to learn more about what it might take to become a homeowner or to successfully secure a home loan for a primary, secondary, or rental property start today if I get a quick quote today.
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