Mortgages in Armagh

Problems People Have With Mortgages

If you’re preparing to buy a home, and are ready to apply for a mortgage, there are a few problems you might encounter. You should make sure you’re familiar with these kinds of issues so that you can take steps to avoid them.

Poor Payment History

If you have a history of making late payments, a lot of lenders simply aren’t going to be willing to work with you. Lenders want to receive mortgage payments on time. If a lender can’t trust that you’ll make your payments, they may feel as though they are taking on unnecessary risk by giving you a loan.

While you can’t travel back in time to make the payments that you missed, you can work to keep up with your current payments. If you can demonstrate to lenders that you’ve made all recent payments without issue, they may be willing to overlook issues in the past.

It’s also a good idea to explore your options so that you can find lenders that are willing to work with people with credit issues. Some doors might be closed to you, but that doesn’t mean you won’t be able to secure a mortgage.

Recent Job Change

Lenders want to see that you have a steady job. They need to be able to trust that you’ll continue to have your job in the future. If you recently started a brand-new job, a lender might be wary of working with you.

If you’re thinking about leaving your job to pursue new opportunities, you may want to hold off on doing that until after you’ve secured a mortgage. Most lenders prefer that you have been at your current job for at least a year. Try to time things appropriately so that a change in jobs won’t keep you from obtaining a loan.

Missing Information

A lot of people think they’re being clever when they withhold information from a mortgage application. However, if you don’t provide lenders with relevant information, they’re going to see it as a red flag. You should make sure you provide all of the information that an application asks for, even if you believe that information reflects negatively on you.

Make sure you disclose all of the debt you have on your application. There’s no sense in trying to hide this information from lenders. If you’re upfront about these issues, you’ll be able to find lenders and mortgage advisors that are comfortable working with you.

Lack Of A Downpayment

Lenders don’t want to completely fund your home purchase. They want you to have money invested in this purchase as well. That’s why you should save money and ensure that you can make a downpayment on the home that you’re buying.

Saving money and establishing a downpayment can really open up your lending options. If you’re able to put a percentage of money down on a home, there will be far more lenders that will be willing to offer you a mortgage.

New Credit Accounts

If you just applied for a new credit card, many lenders will refuse to give you a mortgage. When you’re taking on a lot of credit, there will be numerous lenders that will be reluctant to work with you. This is true even if the credit card doesn’t have a particularly high limit.

Even if you make all of your payments on time, a new credit card could make it much more difficult for you to obtain your mortgage. You should wait to apply for new credit cards or other lines of credit until after you have a mortgage.

If you’ve already applied for a new credit card, you may want to wait a few months and make steady payments before you apply for a mortgage. That way, your new line of credit shouldn’t have a negative impact on you.

Issues With The Home You’re Buying

If there are significant problems with the home that you want to purchase, many lenders simply won’t want to give you the money. For example, if the appraised value of the house doesn’t match the amount that you’re asking a lender to give you, the lender may refuse to give you a mortgage.

Before you purchase a home, you’ll need to have it inspected so that you can see if there are any major issues with the property. The lender may also ask for an appraisal. If the home is worth less than what you offered, you may want to renegotiate with the seller to see if they’re willing to sell the property for less.

Mortgage Advisors Help Fix Your Mortgage Problems

These are just a few of the common problems that people experience when they apply for a mortgage. Now that you’re familiar with these problems, you’ll be able to work to ensure that they won’t be an issue for you. You’ll be able to secure a mortgage so that you can buy a home.