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What are some of the obstacles to getting a mortgage? 

What are some of the obstacles to getting a mortgage?

I’m working with a lovely couple looking into owning their own home. They are first-time buyers currently residing in the East Village. Sam returns to work after an extended pandemic-related layoff, and Anna is self-employed. They dream of having enough property to grow fruits and vegetables and adopt a dog or two!

Given the need for income verification, do you think Sam and Anna qualify for a mortgage? What challenges do they face, and what is the game plan moving forward?

The most common hurdles in getting a mortgage include but are not limited to the following:

1- excessive credit applications

2- extreme debt

3- no prior credit history

4- poor credit score (lower than FICO® 580)

5- non-traditional employment

6- unstable employment history

7- insufficient income

On our ZOOM call the other night, we identified the encumbrances and created a strategy.

1- check their current credit report

2- correct any mistakes

3- avoid taking on additional credit

4- abstain from any “big ticket” purchases

5- improve their credit score

6- reduce monthly debt (less eating out for these two )

7- increase income (Sam is in line for a salary hike)

8- set aside for larger down payments

9- cut back on credit card usage

I immediately connected them with our Raveis mortgage banker to better understand the application and underwriting process.

My guys are committed to doing whatever is necessary and will be in a stronger position to own in early to mid-2023.

We are in a fluctuating market with a ton of uncertainty and challenges.

These guys know they have a strong advocate, and we are their first choice for everything real estate.

 

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