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.