Are You a Risky Borrower?

Are You a Risky Borrower?

Before you pick out the home of your dreams, it’s important to know if you are in good financial stature and aren’t a risky borrower. 

Many people will tell you and warn you that acquiring a mortgage can be a lengthy and complicated process. Throw in questionable credit blemishes and you’re in for a bumpy and uphill battle. Before you pick out your dream home, you have to know if you’re going to qualify for the mortgage. Unlike in 2008, when lenders gave a mortgage to just about anyone, lenders have certain requirements that you must fulfill if you are to get a mortgage. Here’s how you can know if you are going to be a risky borrower in the eyes of your home lenders.

  1. Employment history is unusual 
    W-2 employees working 40 hours per week are the most attractive to lenders. If you don’t have at least two years of tax returns to properly represent your self-employment income, acquiring a loan becomes trickier. Ask a mortgage professional to review your tax returns to determine how much you can actually afford.
  2. Your down payment is zero 
    Lenders require that borrowers be financially vested in their home from the very beginning. That means if you don’t have a down payment, you’re going to have to jump through hoops to showcase your worthiness.
  3. Your credit score is under 620
    The easiest ways for a lender to get a snapshot of your ability to make future payments is to check your credit score and see how financially responsible you’ve been in years’ past.

Contact a dedicated home loan specialist like me, Andraya Coulter. I serve the Bay Area and the entire state of California and Texas with quality, suitable, home loans! I can help guide you through the refinance process and make sure you get the home loan you deserve. Call me!

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