Mortgage Problems and Solutions
You know how sometimes the thought of getting a mortgage in order to build or buy your dream house plagues you in your sleep? It is easy enough to get a mortgage one would think, but its getting that mortgage approved that may pose as a problem since there are several factors that may affect your chances of getting the mortgage that you think you need approved.
One thing that may affect your mortgage application significantly is when you owe tons of money in debt. People or institutions that approve mortgages want to see an applicant who is able to control his finances and not be buried in debt. If you already have too much debt, why would they approve your mortgage which would just mean that they have added to your debts? How can you pay them of if you already owe other people and businesses money? Besides, a big amount of debt makes them think that you are irresponsible.
If this is the case, you can slowly pay back some of your debts. Or you can pick an amount for your loan that is just enough to buy a smaller house. This is a good idea since if you are in debt, applying for a smaller amount may get your loan approved. Of course you will also not afford that dream house, but maybe you can find a smaller and less expensive house?
Another common problem is if your income is simply not that big. Having an insufficient income may pose as trouble for your mortgage application. This may be a hidden blessing since by it getting rejected; you do not get buried in debt.
But if you are truly set on getting a mortgage to buy your own house, you can always try to get a co-signee, like your parents for example. Or you can always try to show the investors more money up front so that they will agree to the loan. That means that you give them a bigger down payment than what they ask for. But take note that this route may mean that you will pay higher interest rates on your payments.