Why You Should Talk to a Lender Before You are Ready to Purchase a Katy House
Most of us have had or do have situations that might make us think we need to wait to speak with a lender about purchasing a Katy home. Maybe we are embarrassed by our credit history, or do not think we have enough money to pay our monthly expenses and still qualify for a mortgage. Better yet, maybe you have recently changed jobs and you think you need to be at your new job for a certain period of time before you could quality for a loan.
Whatever the case, it is best to speak to a professional. You may be right about it not being the right time for you to buy a Katy home, but you should not be embarrassed to meet with a lender and find out your options. That is their job, and knowing where you stand will help you prepare to purchase a Katy home when you are ready.
On the other hand, you might surprise yourself and find out that you can get a mortgage now.
Regardless of the outcome, by meeting with a professional lender you are eliminating the “guessing game,” and you will know exactly where you stand. There are three main reasons that people hesitate to apply for a Katy home loan.
Uncertain Credit History
When you meet with a lender, they are required to pull a copy of your credit report. The report includes scores from the three credit bureaus. You might know that your credit report is not where you want it to be, but don’t let it stop you from meeting with a lender.
Taking the step of meeting with the lender and having them pull your credit report allows the lender to see and then tell you what debts are the biggest problems and impacting your ability to borrow. This allows you to address these items first to improve your credit score.
You Do Not Make Enough Money
Most of us would prefer to make more money than we do. Some of us feel like we cannot get a loan based on what we make and what our current expenses are.
Meeting with a mortgage lender allows them access to your debts and your income. They can then evaluate the situation to let you know what type of down payment you will need and what size loan you will quality for.
With a plan based off of your meeting with a professional, you can move forward making the moves that are necessary to qualify for the loan you are looking for.
Debt
Debt can be a scary thing. It is very easy to get into, but much harder to get out of. Your debt not only affects you in the present, it affects your future by determining your ability to borrow.
A lender that is able to go over your credit report with you and speak with you honestly will be able to identify the debts that are hurting you the most. If you have more than 15 percent of your income going towards paying off consumer debt, you will be required to increase your income or decrease your debt before qualifying for a loan. A co-signer could help you increase your income, but either way, you will have the knowledge you need to increase your borrowing power.
Just because you are not currently ready to purchase a Katy home doesn’t mean that you should wait to speak with a lender. Having a face-to-face meeting with a lender will allow you to devise and follow a plan to have your credit score as high as possible. You should not fear meeting with a lender; it is their job to help you secure a loan, and their professional knowledge will prove invaluable to you.