One of the most common HOME BUYING FAQs comes from buyers who can't get a mortgage at the present time. They're often confused as to why! Well, there are actually some very common reasons why potential home buyers can't get a mortgage.
1. Low Credit Score- One of the major factors of getting approved for a mortgage is a buyers credit score.The TYPE OF MORTGAGE PRODUCT and the mortgage lenders guidlines will determine what a buyers credit score needs to be.
2. Lack Of Employment History- One of the most COMMON MORTGAGE MYTHS is that buyers always need to have a 2 year work history in order to get a mortgage. This isn't always the case as there are exceptions that some lenders can make.
3. Not Enough Money Saved- There are a few mortgage products available that allow a buyer the ability to BUY A HOME WITH NO MONEY DOWN or very little. The truth is though that there are more mortgage products available for buyers who have some money available for a down payment.
4. Too Much Debt- If you're unable to get a mortgage because you have too much debt, the great news is that this is one of the easier things to fix. It's always recommended that as you're PREPARING TO GET A HOME LOAN you don't take on any additional debt if possible.
Below are some of the most important tips to help you get a mortgage in the future.
1. Continually monitor and improve your credit score.
2. Save money for down payment and closing expenses.
3. Don't incur additional debts, if possible.
4. Gather important paperwork you'll need to get a mortgage such as pay stubs and bank statements.
5. Stay positive and understand that just because you can't get a mortgage now, doesn't mean you'll never be able to.