Remember when buying a
house was the American dream? It has recently become an American
Nightmare! A lot of mortgage loans are
being denied due to their credit score there are and many are being denied
without a good solid reason.
A recent article from money.cnn.com
quotes Alan Rosenbaum of Guardian Hill Financial as saying “You can have one Fannie/Freddie guideline you violate and that gets
you rejected”
One single violation and DENIED!!! Compared to just a couple
years ago 25 mortgage loan applications out of 100 are denied within minutes of
taking the app. Before you could tweek the application in order to get the loan
approved.
If you are in the market to buy a home quick be ready to be
denied. Always trust your inner voice when choosing to buy/sell now days. If
you decide to go forward here are some of the denied reasons you may hear:
Are you buying a condo?? Did you know?? Know that if 15% of
the current condo owners within the building are behind on homeowner dues and
10% or more units are owned by a single entity then your application is …..
DENIED!!!
You will want to look at your Debt to Income (DTI) be
assured they will.. In order to calculate your DTI take your Income / the sum
of your debts for the month. A few years ago the percentage of DTI had to be
55% or less now if it’s over the 45% DENIED!!
One of the misfortunes of the economy is that many people
lost their homes to a foreclosure. Even though they have built their credit
score back to high and became credit worthy again they could still have trouble.
If they were to apply for a Fannie Mae or Freddie Mac loan within 7 yrs (vs the
previous 5 yrs) they would be DENIED!
Don’t let this get you down. It doesn’t mean you won’t be
able to buy a house. It just means there may be more preparations that need to
be taken. Do your research. You will find companies like 2SellHomes and some
Portfolio Lenders who will be able to get you into a new home fast.