Let’s say you have begun your home search and you meet with a Lender.   That Lender will review your credit along with income and assets to determine if you qualify for a new loan.  What happens when you find out you do not qualify? While this type of situation is unbelievably frustrating, keep in mind that you do have options.

First, find out what steps you will need to take to get qualified. These may vary and include a credit improvement plan,  a savings plan to accumulate your downpayment and closing costs and/or a plan for how long you must be on your job or earning variable income.

These are steps that you can work on to become a “Prepared Buyer.”  They may take a few months or a few years, if you have had a more serious credit event such as a recent foreclosure or bankruptcy. However isn’t it important to get and work on a plan if you truly want to purchase a home?

An important thing to keep in mind is that you will want to find and work with a lender that has the time to assist you in making these steps a reality. You do need to know there is no “Magic Bullet” and that it will take work and discipline on your part.

Mortgage qualification guidelines are still constantly changing and in most cases tightening.  It is not going to get easier for anyone to qualify for a mortgage loan in the short term.    We at Allen Tate Mortgage offer a Prepared Buyer program for customers who meet certain credit criteria.  It is a no cost way to get a plan so these customers can work towards the goal of homeownership.

What other questions can we help answer when it comes to the mortgage process?

By Chris Cope