Can’t Qualify for a Home Loan? 4 Ways to Become More Attractive to Mortgage Lenders
Right now, with tightened lending standards and wary mortgage lenders, many people are finding that they do not qualify for the home loan that they want. Indeed, many folks who would have found it easy to get a home mortgage loan in the freewheeling days before the subprime lending crash are having difficulty right now. You don’t have to despair if you are told you do not qualify for a home loan, though. Here are 4 things you can do in order to become more attractive to mortgage lenders:
- Find someone willing to help you. This can be a cosigner or a copurchaser with an income. A cosigner lends his or her good credit to the case, and also may have a higher income. However, the cosigner is the one who becomes responsible for the loan if you bail, so it can be difficult to find someone willing to go this route. A copurchaser should be someone you trust and want to live with. You both share ownership of the home, and the extra income could be just what you need to qualify.
- Buy a less expensive house. If the problem is that you do not qualify for the home loan amount, you might try a less expensive house. Downsize the number of bedrooms. Buy a condo or a townhome. Consider something with a smaller yard. Sometimes, just coming down in your expectations for your home (especially if it is your first home) can get you what you need from mortgage lenders.
- Shop around. Some mortgage lenders are willing to do more than others. Visit different lenders and lay out your case. See whether or not they are willing to work with you. But beware: If you look desperate, you may not get a good loan. And watch out for loan sharks.
- Wait it out. Right now, the economy is not being friendly to those who want to qualify for a home loan. You can always wait for the current worry to subside some, and then try again. In the meantime, you can work on improving your credit score and saving up money for a down payment.
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improving credit score, credit score, mortgage loan blog
September 11th, 2008 at 4:04 pm
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