Is now a good time to re-visit applying for a mortgage?

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Is now a good time to re-visit applying for a mortgage?

Rebecca Ross expert headshot

Rebecca Ross, President of Elite Lending, has brought us some new information on home mortgages.

Question:  If I couldn’t qualify in the past, is now a good time to revisit it?

Answer:  Yes, and this is why: 

– Income increase in 2014: I’m seeing a growing trend of more and more clients who have made significantly more money in 2014 than they did in previous years as our economy continues to recover.  Particularly with self- employed buyers, now is a good time to revisit qualifying with updated tax returns.

– Down Payment Requirements: One of the biggest hurdles to buying a home is accumulating the pile of cash for a down payment. With the recent introduction of several new programs, prospective home buyers with little money to put down now have more options to consider.

– Credit Recovery: Do you have a foreclosure or short sale on your credit that prevented you from qualifying for a new home purchase? Now is a good time to circle back to those dates of the derogatory credit issues because the waiting periods are not as long as most potential buyers think that they are.  In some cases, there is no waiting period if you can prove extenuating circumstances (loss of job, decrease in income, death or medical are some examples).

– Debt-to-Income Ratio: Did you not fit the ratios needed for loan approval? Say you have solid credit scores and money in the bank, but because of student loans or car payments your debt-to-income ratio exceeds the maximum that federal rules generally prescribe. Good News:  A small but growing number of lenders have now begun offering mortgages with more-flexible terms designed for borrowers like this.

These are just a few reasons that now may be the right time to revisit qualifying for a home mortgage.

Rebecca Ross, President, Elite Lending


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