Mortgage rates are at historic lows and there is no better time to buy a home. Do you qualify for those low advertised rates? Will you be able to secure a mortgage? Studies show that 6 in 10 people do qualify for mortgage loans. For those that can’t qualify here are ten reasons why a would-be borrower might face rejection:

1. A low credit score will keep you from getting a mortgage. Typically, a score less than 620 is unacceptable by most lender standards.

2. A maxed out credit card threshold will stop a mortgage in its tracks. If your balance more than 30 percent of the allowable credit lenders will take pause.

3. Multiple credit inquiries may drop your credit score. Limit your credit inquiries to mortgage-only credit pulls within a 30-day period.

4. Did you Co-sign a loan with someone? If so, plan to provide 12 months of canceled checks showing they make the payments to the creditor.

5. Other housing liability payments or a consumer loan for a vehicle may prevent your loan approval. Lenders are looking for you to have double the income to offset each dollar of debt you carry.

6. If you are self-employed you may not be showing income under a Schedule C. This reduces your borrowing power.

7. Claiming many unreimbursed business expenses and losses on your taxes may help you pay less taxes but it also can reduce your borrowing power.

8. If you change jobs often this could also hurt your chances at a mortgage. If you occupational status has changed in the past two years it can hurt you.

9. If you are planning on using cash for your purchase think again. All monies must come from some kind of a bank account.

10. Don’t plan on transferring money from different accounts during the loan process. Be prepared to show full bank statements and a chain of deposits etc.

Your mortgage professional should be able to look at your credit, debt, income and assets and make a determination of whether you qualify for a mortgage.

If there was ever a time to purchase real estate it is now. A unique combination of circumstances makes buying a home a no-brainer.

Here are five reasons why you should buy a home NOW…

 

1. Houses are more affordable

2. Historically low mortgage rates

3. Prices are stable

4. Home ownership is the path to independence and wealth

5. Owning a home gives you pride of ownership

Call today to find out what homes are available in your price range or do a quick search to look for homes and create a profile on this site to save your favorites.

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