Those that have bought a house understand that a mortgage is necessary. However, there may be situations in which you may not qualify for one.
Don’t panic! The Powell Group can assist you with many situations, show you why you didn’t qualify and how to fix your situation. This is just a small list of the things you can do.
- If your credit score is too low, it probably means that your number is below 620. There are several online tools and apps that will let you check your score. If it is below 620, check your credit card bills. Are you paying the minimum payments on time? If not, the delinquency will affect your score. If you find errors on your credit report, you can talk with a representative to fix the problem. It may take a while if you do it yourself. However, talking to a lender can speed up the process.
- Your debt-to-income ratio is a big deal. In fact, it could count for up to 30 percent of your FICO credit score. If your ratio is more than 50 percent debt, your chances of getting a mortgage are slim. You can try to get a second job, but, of course, it’s easier said than done – especially if you have a family and a demanding job already. So, like the saying goes (attributed to W.E. Hickson), “If at first you don’t succeed, try, try, try again.” Get a second – or third – opinion from a different lender. The Powell Group can guide you through the process.
- Your down payment is also important. We at The Powell Group can help you figure out what percentage must be paid. If you fit into certain categories (such as a veteran), you could qualify for a lower down payment. However, we can help you figure out the percentage you need in order to get the home of your dreams.
The Powell Group encourages you to contact us if you have a mortgage question. In fact, our team members can answer all of your housing questions and concerns. We can also put you in touch with lenders who can answer specific mortgage questions.
If you are in the Western Upstate of South Carolina and are looking for your dream house, log on to our website and view all of our available homes. We are sure you will find what you are looking for.
(Picture used from picserver.org)