Un-mortgage-able?These days the banks are really careful about their lending practices. The local Maryland movers know that the ease in which mortgages were given out in the previous years have contributed to the housing bubble bursting, so everyone is more conservative. So if you're looking to buy a home, you have to know that there's a possibility that you'll be denied the loan. There are numerous factors that can make you un-mortgage-able besides the obvious like a low credit score. Being self-employed for example can be a issue for the bank. Being your own boss does have its advantages but as far as being mortgage-able, not so much. When you work for a major company, you have reliable, steady paycheck. But when you have your own business, lenders know your income is unstable. Some months can be great while others leave you struggling. The fluctuations might result in you defaulting on your payments. Documenting small business income can also be tricky, because salaries don't work the same way. Lenders look for at least two years of income taxes to determine whether not you're a good candidate for their mortgage.
The local Maryland moving specialists found out that being new to the real estate market can also be a determining factor in the land of lending. If you're looking to buy, the banks are looking for someone who can prove at least two years of housing history. They want to be able to verify that your rental payments were done on time and you were reliable. If you're a recent graduate and have lived with your parents, there's a chance you won't have to prove your rental history. In fact the National Association of Realtors say that first-time homebuyers made up 32% of all buyers in the third quarter of 2012. Historically, they account for about 40%. Your income might be a problem too. The local Maryland movers know this sound obvious, but it's truly worth discussing. If your monthly debt payments account for 45% of your gross monthly income, some lenders will lend you the money. But anything over that 45% and you become a risk.
All My Sons of Maryland also found out that applying for a mortgage multiple times can render you un-mortgage-able. Numerous loan applications can lower your credit score, but if there done within a week or two of each other, they shouldn't count against your credit score. The local Maryland movers found out that less than five inquiries won't make a difference, unless your credit score is already low to begin with. Buying something big right before you apply for a mortgage can be problematic. Last minute purchases during the loan-approval process isn't a good idea because your credit score will be pulled again.