Let’s face it most of us are not the ideal borrower. We don’t all have good credit ratings, substantial down payments, low debt to income ratios and more. In fact most borrowers have credit problems and obstacles to overcome when trying to meet lender requirements especially when seeking to refinance or to obtain a new home mortgage.
There are however, solutions to these common problems faced by both mortgage lenders and borrows. A mortgage broker can often help assistance to bridge the gap between lenders and borrowers.
Blemished credit is a common issue that can occur when borrowers have had issues making payments to past creditors. If you have a history of non payments, late payments or accounts that are delinquent you will have to face these problems head on. When your credit is evaluated lenders will see these blemishes negatively and may be reluctant to approve your loan.
There is not a sure fire way to improve your credit score immediately. It will take some time but if you take action sooner than later it will show lenders that you are serious about getting your credit history together. Be upfront with your mortgage broker so that they can address your credit issues head on when looking for a home loan that works for you both. Offer an explanation as to why there were issues in credit such as the loss of a job, a serious illness or other event that resulted in the inability to pay your bills on time. Mortgage brokers may suggest that you seek out a cosigner for your mortgage. This person should have an exceptional credit history along with a high credit rating.
If you are seeking to buy a fixer upper or cooperative apartment it will be difficult to find a lender. The reason is that there are already complexities when it comes to buying into cooperative living situations. The mortgage on a cooperative apartment is different than that of a standard mortgage.
Homes that require a great deal of repairs before they are considered safe are also hard to get mortgages on. These repairs can be quiet expensive and often exceed three percent of the homes overall value. This makes getting a mortgage loan problematic. A lender may be more apt to present a borrower with the option of two separate loans. A mortgage may be given to purchase the home and a construction loan to make necessary repairs and improvements.
More issues that can cause borrowers headaches in lending are:
A low appraisal on the home
A high debt to income ratio
A low income
Don’t let these issues worry you. Strap on your creative boots while working directly with mortgage broker that has connections within the lending industry to seek the best mortgage option for your situation.
Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.