As a general rule, no more than 28% of your gross monthly
income should be towards your monthly housing payment and no more than
36% of your income should be going into your housing payment plus other
monthly debt. These guidelines vary by the amount of down payment you
make and the loan program you choose.
If you have been pre-qualified and are not satisfied with the amount
you qualify for, we have listed four of the most common obstacles
to qualifying for a home loan below and some possible solutions to
each.
| Excessive Long-Term Debt |
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- Consolidate your debts by taking out one loan and paying off
your bills with the money.
- Pay off long-term debts by using some of your cash and making
a lower down payment. Selling an asset to pay off debt is another
option.
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| Inadequate Income |
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- Income from alimony, child support, bonuses, overtime or future
raise might raises might be considered in qualifying. If you
have overlooked any income, be sure to tell your loan officer.
- Find a co-mortgagor who is willing to go on the loan with
you to help you qualify.
- Make a higher down payment.
- Consider a financing option that will allow you to stretch
your purchasing power. Some of these options include FHA loans,
Adjustable Rate Mortgage, Balloon financing or a graduated payment
mortgage.
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| Credit Problem |
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- Repair your credit file by contacting creditors and requesting
that negative information be removed.
- Pay off outstanding judgments, liens, and collections.
- Re-establish good credit.
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| Lack of a Down Payment |
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- Get a gift from an immediate family member.
- Ask the seller to carry back financing.
- Sell or borrow against an asset.
- Borrow against or cash out your 401K.
- Ask the seller to contribute towards closing costs.
- Obtain a low point or zero point loan.
- Consider financing options that offer lower down payments
and help with closing costs.
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