You need to know the pros and cons says Russ Whitney between buying and renting a home throughout the housing market, and also take a look at the importance of your credit score. Lenders have access to your accounts, public records, and other systems. Take a look at these reasons tells Whitney as why home mortgages are denied and make sure none of them apply at any of your situation.
Bad credit is often the overlooked debt that trips people up when it comes to mortgage loans. As per Russ Whitney when you apply for a loan to buy your home items remain on your credit report. This is why it’s important to be thorough when checking your credit reports. Clear up any bad debts from the past.
Lenders are going to look at how much debt you currently have and compare it to your income. Russ Whitney guides all to take a look at your tax returns if you have business expenses that come out of your own pocket, a lender is going to deduct those from your useable income. Keep an eye on your checking account and credit card cash advances.
Down Payment Too Small
Lenders are going to expect you to have a little chunk of money to put down on your dream home. Russ Whitney deals with some mortgage lenders will accept 10% down, but there are others who will require 20% down. It’s very rare for someone to offer a mortgage loan with no money down.
You need to see that you are stable and have the ability to make a long term commitment. If you’re going from job to job, you are setting off their red alarm that you might not be able to make your mortgage payments.