What If I Don’t Currently Qualify For a New Mortgage
Monday, July 29, 2013
When the initial dream of homeownership and beginning your process starts to form in your mind, bets are - the question stated above is not included in your initial thoughts. And while this type of situation is unbelievably frustrating, keep in mind that you do have options.
Let’s start from the beginning, say you have began your home search and you meet with a Lender. That Lender will review your credit along with income and assets to determine if you qualify for a new loan. But what happens when you don’t qualify?
First, find out what steps you will need to take to get qualified. These may vary and include a credit improvement plan, a savings plan to accumulate your down payment and closing costs and/or a plan for how long you must be on your job or earning variable income.
These are steps that you can work on to become a preferred buyer. They may take a few months or a few years, if you have had a more serious credit event such as a recent foreclosure or bankruptcy it may be longer. Everyone’s circumstance is different but an approved lender will be able to council you and get you on the right track – just remember, there is no “Magic Bullet” and that it will take work and discipline on your part.
Mortgage qualification guidelines are still constantly changing and in most cases tightening. Do not get frustrated or deviate from your dream of homeownership. There are always steps to be taken to help you get on the right path and ultimately reach your final goal.