5 Signs You’re Not Ready for a Mortgage
Posted by Your Loan in the Valley
- Bruised & Beaten Credit
You don’t need top-tier credit to land a home loan. You don’t even necessarily need what’s often considered “good” credit. But consumers with scores below a 620 can have a tougher time securing financing.
- Insufficient Savings
You don’t need a mountain of money to buy a home. You don’t even necessarily need a down payment – just ask VA and USDA buyers and the thousands of folks who tap into down payment assistance programs in their community. But you’re going to need at least some cash in the bank, in part to possibly cover expenses like a down payment, earnest money deposit, appraisal, inspection, closing costs and more.
- Income Instability
Mortgage lenders want to feel like you’re a safe bet. A rocky employment situation can raise red flags. Ideally, you’ve been working the same job for at least the last two years. But that’s certainly not a reality for millions of American workers.
- You’re Still ‘Seasoning’
There is homebuying life after a bankruptcy or foreclosure, but you’ll typically need to wait at least a couple years following one of these events. Waiting periods can vary depending on the type of bankruptcy or foreclosure, the loan type, the lender and more.
- You’re Unprepared for New Expenses
Owning a home can be freeing, but it also comes with new expenses you don’t typically face while renting or living in your parents’ basement. Property taxes, homeowners insurance, homeowners’ association dues, maintenance costs and more can all eat into your monthly budget. Source: blog.credit.com by Chris Birk
Your Loan in the Valley