| "Surprising Reasons You Can’t Get a Home" - McAllen Real Estate | ||||
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| McAllen Real Estate - Residential | |||
 Buying a home is the American Dream and it can often be very difficult to obtain a home loan. Before you start the process of purchasing a home take these 7 items into consideration. Being prepared for these 7 reasons will allow you to be proactive and take all necessary actions to avoid being denied for a home loan. 1.) Down Payment - Even if you have the 10-25% of the asking price on the home, lenders will like to know how you obtained the down payment and how long you have you have had access to the money. For example if you were given the down payment by a relative as a gift, the mortgage company may fear that you will not be able to maintain mortgage payments. 2.) Credit - Remember that credit history is an ongoing process. First, you should check your credit score with all 3 agencies to make sure nothing is being reported incorrectly. You will want to aim for a score of 660 or better. 3.) Job Security- Jumping from job to job is one thing that banks definitely frown upon. A steady job helps ensure the bank that you will not have problems paying your mortgage. 4.) Parent History- If your parent's credit history is questionable you may have a hard time receiving financing. If you know they have previously foreclosed or had late payments on their home or credit cards you may want to reconsider where you are trying to obtain financing. 5.) Location - Believe it or not the location of the home may affect whether a lender will risk lending you a mortgage. For example if the home will sit in areas that experience dangerous weather patterns the bank may have a hard time lending you the money. 6.) Inspection - Many banks are now requiring that a home inspection be completed before closing any deals. Unfortunately, they way a home scores on an inspection can weigh heavily on your mortgage. 7.) The Bank - Most people know that economic conditions have a large impact on the bank's ability to lend. "If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify." Blog inspired by article featured in the KCM Real Estate Blog and can be seen here: http://www.kcmblog.com/
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