ualifying for a mortgage monthly payments. Try to be
can be a stressful affair. realistic in your evaluation. It
A common problem that can will save you many sleepless
occur is not having enough income nights. But, what if you can
to qualify for the loan amount. afford the payment?
If you have this problem, here
are a few possible solutions. The first creative solution you
may want to consider is an
Mortgage Creativity increase in the amount of the
down payment. By increasing your
You find the house of your dreams down payment, you will reduce the
and need to get a home loan. You amount to be borrowed which can
have great credit, almost no debt make all the difference in
and have been employed for five qualifying. If you can bump the
years with the same company. You down payment up to 25% of the
apply for a loan and are stunned total value of the property, many
when you are turned down. The lenders will relax the
reason? The lender says you have qualification requirements.
insufficient yearly income to
justify the loan amount. A second creative solution
involves alternative loan
What the lender is really telling sources. Initially, good old mom
you is it doesn't think you can and dad may be able to help you
afford the monthly payments for out. In fact, this is one of the
the mortgage. Before you go traditional down payment funding
ballistic, you should sit down sources for most first time
and seriously review your homebuyers.
financial situation. Getting a
home loan is fine and all, but A less known alternative,
not if you are unable to make the however, is your 401k retirement
account. Under federal law, you interest instead of a bank.
can borrow up to 50% of your 401k
balance. The repayments have to Regardless of the approach you
be made in five years, so analyze take, insufficient income need
how this option will impact your not be the end of your home
finances. If you can pull it off, buying prospects. Get creative
you will be in the advantageous and you can find a solution.
situation of paying yourself
About the Author:
Dan Lewis is a mortgage broker with http://www.gwhomeloans.com - San Diego mortgage brokers providing home loans and refinances.
Source: www.isnare.com
