What Stops Most People From Getting Qualified For A Home Loan

If you plan on buying a home this year, here are couple of things to keep in mind.  So you do not kill your chances on getting a home loan this year and stop yourself from getting qualified for a home loan.   This will not cover everything that can keep you from getting a home loan but these are the two biggest things that seem to kill the deals that come my way.

1) This is the number one killer on getting a home loan, and stopping someone from buying a home.  Buying a car, is the number one killer whether that be a new car or a used car.  If you even think it may be a possibility that you want to buy a house this year or the next.  Wait on the car unless you can buy it cash or just changed your mind on buying a home.  Most car loans are for 5 years, so if for example your debt to income does not justify the car payment and a mortgage payment.  You may be looking at 5 years till you get qualified for a home loan.

Another thing even if you are planning on co-signing for your son or daughter that car payment just became your car payment.  If you do not want that debt to be considered as part of your debt, then make sure that your son or daughter gets their own checking account in their name only.  Make sure that they make the payments on time and after one year.  So that way the debt will not be counted against you, and keeping you from qualifying for a home loan.

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2) The number two killer for qualifying for home loans.  Is paying your bills.  Even if they are old collections or just small accounts does not matter that it is a $40.00 balance that you may have on your credit card.  If you for some reason forget to pay your bills because you are just too stressed or frustrated for what ever reason.  Then you end up having a 30 day late or maybe even a 60 day late from the last time you had your credit checked and got qualified to buy a home.  So you find your home and submit your offer based off of your last approval.  But then a new credit check is done and now because you have some accounts showing that you paid late.  Your score just dropped a few points that could be enough for you to not qualify for a home loan.  Also if you know you are planning on buying a home don’t get any new cards.  That 10 or 20 % discount is just not worth it.

So don’t buy any new cars or even used ones, if you plan on buying a car in the near future, and pay your bills on time.  Good Luck !!


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