If you want to buy a home in Atlanta, one of the first steps in this process is mortgage approval. Without the financing, you could be facing disappointment and wasted time when you are unable to buy the home of your dreams.
It is essential that you know the price range of the home that you are able to purchase. This information will help you narrow down the options so that you can quickly identify the right solutions for your family. Unfortunately, some buyers run into issues when they find out that they can’t get approved for a mortgage at the current time.
Why are you unable to get approved for financing? Here are some of the most common issues that might be faced:
- Credit Score Problems: A low credit score not only affects the size of the loan, but it will also impact the interest rate and the amount of required mortgage insurance. If the score is too low, then it could be a deal killer. When you want to buy a home, it is essential that your credit score is addressed as soon as possible.
- Employment History: A lack of consistency in employment history is another reason why you might have a hard time getting a mortgage. A solid work history shows that you will likely have the income to support the payments that are needed. In addition to consistent work, you need to be able to show reliable income sources. For example, it might be a challenge to qualify for a mortgage if you don’t have traceable, stable income. For this reason, it can sometimes be hard for self-employed buyers to qualify for a loan.
- Down Payment: While there are various options to overcome the hurdle of a down payment, you will need to have at least a little cash on hand to pay upfront expenses. Talk to your lender about the low- or no-down payment options and identify the amount of cash that you will need to have on hand to qualify.
- High Debt Load: During the mortgage application process, your lender will take a look at your debt-to-income ratio. Too much debt could be a red flag that results in mortgage disqualification. Start a focused effort to pay down the balances that are owed. Not only will you reduce the debt load, but debt paydown can also help with credit score improvement.
DUFFY Realty has experience helping many buyers find the right solutions to buy the family home of their dreams. If you are ready to buy a home, then we invite you to talk to us about the services that are available. We offer the leading real estate solutions in the area. Additionally, we have excellent industry connections to help you find a good lender. Call to learn more: (678) 318-1700