August 8th, 2013 by Lisa J. Gryba, AMP
Tips to help you secure a mortgage approval and a home of your own
Here are a few tips that can assist you in getting your mortgage application approved…
1. Problem – Your income isn’t high enough to qualify for the mortgage you need.
Solution – Ask someone who has enough disposable income if they will be your co-signer. When someone agrees to be your co-signer they are agreeing to guarantee the lender that your mortgage payments will be paid. It isn’t necessary for this person to be actually living with you or helping you repay the mortgage. Another benefit that a co-signer can provide is if your credit is less than perfect, their credit may compensate for it.
It goes without saying, however, that co-signing is a big commitment with possible financial and legal ramifications for the co-signer should you default on the loan. It is therefore advisable to discuss the financial and legal obligations with your co-signer and for them to seek professional guidance prior to signing any mortgage documents.
2. Problem – The economy/market currently isn’t conducive to getting a mortgage.
Solution – Wait it out. Of course, this might be easier said than done, but sometimes waiting has benefits. If your credit score needs improving, now would be the perfect time to work on it. You can also take this opportunity to increase your savings or reduce/pay off any debts that you may have. At the same time, the price of homes or even interest rates could drop. These factors will improve your mortgage eligibility.
3. Problem – You can’t qualify for the amount of mortgage that you want.
Solution – Be flexible and look at purchasing a property that is more within your financial reach. If you are in a situation where you can’t put off purchasing a home until a later date, switching the kind of home you are willing to purchase may make the difference. What about a smaller house or a different location? There are many different factors to consider. Making some changes now can assist you in purchasing the kind of property you had originally wanted in the future.
4. Problem – You just don’t have enough funds.
Solution – Find a family member to gift you the money or find someone to purchase the property with you if you can’t qualify on your own. This is a major purchase for anyone, so it is important to find someone you trust and who you will be able to live with. This is different from a co-signer as the individual will actually be living with you and making mortgage payments along with you.
by Lisa J. Gryba, AMP
I am a passionate and dedicated mortgage professional, devoted to enabling my clients to obtain the best mortgage products and interest rates for their nee