Some people would love to become homeowners, but they think that now is not the time. In many instances, the reasoning has to do with the current state of the person’s finances. It’s true that there may be situations in which buying a home right now would not be the most prudent move. At other times, owing a home would actually help the situation.
Consider these common reasons why people believe they won’t qualify for mortgages. Remember that even if banks say “no”, Clover Mortgage will say “yes” in all sorts of circumstances. That may even apply if the following exists.
You Don’t Make Enough Money
Your current income level may leave you thinking that managing a mortgage would be out of the question. It’s true that many lenders look closely at monthly income and require that applicants have verifiable income over a certain amount. You may not make enough each month to qualify with some lenders. Others will be happy to work with you.
Many people are surprised at how low some lenders set their income requirements. In fact, you may find that the minimum required is less than you make right this minute. If that’s the case, you’ve passed the first hurdle toward qualifying for financing.
You Have Too Many Debts
Lenders do consider the amount of debt that applicants carry. More to the point, they look at how that debt compares to your income and how well you’re doing with managing the debt at present. If you’re up to date on your rent, utility bills, and still managing to make the payments on all your credit cards, there are lenders who are willing to work with you. The fact that you’re keeping up with everything indicates that you would do the same with a mortgage payment.
Keep in mind that getting rid of debt does free up more of your income and makes your application a little more attractive to lenders. With less debt, expect a wider array of lenders to be interested in working with you. That could provide more choices in terms of lenders who offer competitive rates and other perks.
There’s a misconception that being self-employed prohibits one from obtaining a mortgage. That may be true with some lenders, but not with others. The key is being able to provide data that confirms a stable income. Tax returns, balance sheets, income and expense reports, and other documents can be used to verify your income. If you old like to learn more about financing as someone who has your own business, check out the Frequently Asked Questions about getting a self-employed mortgage. The answers may surprise you.
Your Credit is Not the Best
Few people get through life without some sort of credit issues. If your credit score is not the best right now, it does make sense to do what you can to improve it. At the same time, that doesn’t mean you have to pass on a great deal for a home.
There are mortgage lenders who are happy to work with people who have lower credit scores. Assuming you meet all their criteria, you could be approved in a matter of days. As a bonus, making timely mortgage payments will help improve your credit score over time.
Don’t let your dream of owning a home fall by the wayside. Reach out today and see what can be done. The solution may be a lot easier to find than you think.