By Karen Scopetski, V.P. Coldwell Banker Residential Brokerage
[email protected]
www.karenscopetski.com.
Mortgage rates are at historic lows and there is no better time to buy a home. Do you qualify for those low advertised rates? Will you be able to secure a mortgage? Studies show that 6 in 10 people do qualify for mortgage loans. For those that can's qualify here are ten reasons why a would-be borrower might face rejection:
1. A low credit score will keep you from getting a mortgage. Typically, a score less than 620 is unacceptable by most lender standards.
2.? A maxed-out credit card threshold will stop a mortgage in its tracks. If your balance is more than 30 percent of the allowable credit lenders will take pause.
3. Multiple credit inquiries may drop your credit score. Limit your credit inquiries to mortgage-only credit pulls within a 30-day period.
4. Did you co-sign a loan with someone? If so, plan to provide 12 months of canceled checks showing the payments made to the creditor.
5. Other housing liability payments or a consumer loan for a vehicle may prevent your loan approval. Lenders are looking for you to have double the income to offset each dollar of debt you carry.
6. If you are self-employed you may not be showing income under a Schedule C. This reduces your borrowing power.
7. Claiming many unreimbursed business expenses and losses on your taxes may help you pay less taxes but it also can reduce your borrowing power.
8. If you change jobs often this could also hurt your chances at a mortgage. If your occupational status has changed in the past two years it can hurt you.
9. If you are planning on using cash for your purchase think again. All monies must come from some kind of a bank account.
10. Don's plan on transferring money from different accounts during the loan process. Be prepared to show full bank statements and a chain of deposits etc.
Your mortgage professional should be able to look at your credit, debt, income and assets and make a determination of whether you qualify for a mortgage.
Yours? truly,
Karen Scopetski, Vice President
Coldwell Banker Residential
318 Main Street
Northborough MA 01532
508-393-4442 Direct
508-380-0112 Cell
508-365-3732 Fax
Referrals are the cornerstone of my business. Your referrals are both welcome and most sincerely appreciated.
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