You may be currently renting out and are now planning to buy a home. You may also have weighed the pros and cons of buying versus renting. If you are a first time buyer and are now looking for homes in the market, do your research so you are informed about the real estate process.
The very first thing you need to consider is applying for a mortgage. Here are some reasons that home mortgage are denied, so you can prevent these issues when you apply.
The number one reason home loans are denied is a bad credit score. You may have ignored debts in the past years and when you apply for a home loan, this will be brought out and could drag you to the point of a denied mortgage. To prevent this, clear up your debts before applying for a mortgage.
Another reason for denial is the unbalanced ratio of debt and income. Lenders will check how much your debts are compared to your current income. An additional reason for denial can be a small down payment. Most lenders will require 10 to 20% of the price of the home for the downpayment.
Another reason can be inconsistent employment. Lenders will verify and require you to have a stable work history. It is also critical to be honest and forthright with your lender
Thinking of buying a home? Call Homes for Sale in Irving TX. We will help you with the entire home buying process from getting pre approval for a mortgage to closing, signing of contracts and moving in.
