House You Can Afford ▸ Process of Getting Approved for a Home Loan

Avoid Pitfalls

Avoiding Pitfalls or Delays to Getting Approved 

It might save you a lot of hassle to discover how to …

  • Learn the New Rules to Getting Approved, FAST?
  • Avoid the Hidden Pitfalls that Big Banks Will Never Reveal?
  • Navigate Through the Rough Waters of the Next Dip in Home Values?
  • Before you get sucked into the perpetual loan cycle that ends with you losing the home of your dreams.

If this sounds like a good idea to you then check out these hot tips for maximizing your chance of being approved for your house in Long Beach before you suddenly face the panic of your home ownership dreams wash away.

Sooner or later you will have to face facts in our new economy; getting approved for a home loan is far more challenging that it would have been had you tried just five short years ago.

In fact, even current home owners who were approved for loans that require them to make a monthly payment of up to 50% of their gross income struggle to get approved for just 30%.

Why? The rules have changed since the ultimate collapse of the housing market in the mid-2000’s. Now the market has changed again and we are facing an upswing that cause the most desirable homes in our area to go into a bidding war, with sales nearing peaks like we saw in the heat of the housing market.

Are we facing another bubble? Not even close, however, you may be facing a task even more daunting; winning the bid on the home of your dreams in time, because the fact still remains that you cannot even put in an offer until you’ve been approved for financing.

So we can all agree that it is vital to take action as quickly as possible to avoid the pitfalls and delays that might cause you to lose out on making an offer on your dream home.

#1: Check Your Credit (But Not Why You Think): If you have not already heard, credit fraud is at an all-time high, but the shocking fact is that nearly 25% of credit reports have errors that might prevent you from getting the right loan for you. The simplest step you can take to prevent a crisis? Pull your credit report at least one time each year, and if you are ready to begin looking for the right fit home loan simply contact me as I would be happy to go over it with you and show you what you can do to improve your credit and get the best possible rate on your next loan.

#2: Net Income Blues: If your income comes from more than one job, or because you work more than 40 hours a week and get overtime, your mortgage lender may only allow you to claim up to 40 hours per week in income. Business owners face an even more daunting challenge; tax liability. If you own your own business you may have claimed every possible tax deduction leaving your net income shy of what you need to

#3: The Back-End Rule: Sooner or later everyone has heard that your monthly payment should be less than one-third of your income, but more lenders are beginning to follow the 43% rule. What does this mean? Let’s say that you make $6,000 a month. Under the 43% rule ALL of your monthly debt payment obligation plus your new mortgage payment must equal less than 43% of your payment, a far cry from lenders who were allowing you to give them 50% of your income on a 40 year loan just a few short years ago.

#4: Your lender won’t let you take a faulty loan offer. No Long Beach home is worth accepting a loan that is going to land you in foreclosure, or wind up costing you far more down the road, so if your lender is smart, they may tell you no. Remember, that hearing a “no” today does not mean no forever. In fact, new loan opportunities are opening up every day and the right loan may just be waiting for you so please do contact me to find out how I can help you get into a home that means you are one step closing to living your dreams today.

The truth is that while the market is tight, there are loans available for people who are willing to do the work to get into the home of their dreams. Allow me to help you determine the next steps you must take to get into your new home by calling me with questions at (562)257-5008 or you can contact me here.

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