What is Happening in the Mortgage Market

When buying a home, getting approved for a mortgage is one of the biggest challenges that homebuyers face. If you don’t fit within a narrow range of standard guidelines, you could be declined quickly without much consideration. However, with the right strategy, you can drastically improve your chances of getting approved for a mortgage. Understand how the mortgage industry works so you can adjust your finances and come up with the right strategy for mortgage approvals.

Explore Your Financing Options

Financing options are nearly endless. You’ve got conventional financing, government programs, seller financing; many different financing options exist. It’s important to keep this in mind when you’re shopping for a mortgage. One program might not work for you, but with a government loan you might get approved. Or you might be able to quality for a loan if you could get seller financing to help make up the difference. Be creative when you consider your financing options.

One thing that most mortgage underwriters look at is various ratios and your outstanding debt. The exact amounts vary by lender and program, but in most cases, your debt must fall below a certain percentage of your income, including proposed home payments. This means that if the home you want to buy would cost too much of your total income, you might not get approved.

You can improve your chances by reducing other debt. Things like credit card debt and car loans eat into your available income, and if you pay these off, you may have enough income to qualify for a mortgage. Lenders also look at the total amount of debt you have, your saving and spending habits and other qualifying factors. If you have a lot of available cash on your credit cards, for example, it looks like you don’t spend beyond your means and lenders count that favorably.

If you have credit issues, we would like to help.  Poor credit can be improved quickly.  You just have to work at it and we can show you exactly what to do.  Get started by arming yourself with information here.

Meet with a lender to find out how your financial picture looks. Then make the changes you need to improve your finances and enable you to qualify for a loan. You won’t get one by sitting around and wishing, but you could get approved if you take steps to meet lender guidelines.

For a free consultation, call or email me today.

Richard Woodward
Banker / Senior Branch Manager, NMLS ID 217454
Envoy Mortgage - When Trusted Advice Counts
Click here to view My Personal Brochure

Office: (972) 661-5136 Fax: (972) 314-9647

17440 Dallas Parkway Suite 118 Dallas, TX 75287

Visit Us Online - www.Envoy-Mtg.com

Texas Mortgage Banker Registration #45300 NMLS ID 6666