There’s nothing more disheartening than realizing your home loan has fallen through or you can get approval for a home loan. It really comes down to these five reasons why a lot of buyers feel to get their mortgage approved.

#1. Low credit score.

Now, I specialize in helping a lot of folks with lower credit scores get approved with different home loans but if your credit score is below 500, getting a home loan might be extremely difficult if not impossible. If you’ve dealt with foreclosures or bankruptcies in the past, it can be extremely difficult to get a decent loan and if you’ve been applying for more loans and exceeding the limit on your credit cards, this can negatively impact your score. Bankruptcies and foreclosures can remain on your credit history for as long as seven years however, there is some things you can be doing today to help increase your credit score. Call me today to find out.

#2. Not enough down payment.

Lenders will look at the amount of down payment you can offer when buying a home. The higher the down payment, the lower the interest rate and the more favorable borrower you become. We can get home loans for as little as 1.5% depending on the type of loan and your income but generally speaking 3.5% up to 20% is enough qualifying down payment.

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#3. Too much debt.

Lenders will look at your debt to income ratio meaning that if you have too much debt and not enough income, they don’t feel that you are responsible enough to take on another loan. Lenders also want to see that about 43% of your income or less is going towards housing and no more.

#4. Poor job history.

If you have a history of jumping from job to job or you are currently unemployed, lenders will see you as a big risk. If you have a short employment history you may not be able to qualify for the mortgage you want, however, there are other options and we can get you on the path to homeownership sooner rather than later.

#5. Unreliable income sources.

Self-employed borrowers have a lot of options these days that they didn’t have just 10 years ago. However, if you have too many unreliable income sources it might look risky to a lender.

Home Purchase Qualifier 2019