People want to buy homes but some are facing issues getting qualified. Some of the issues buyers are facing are the higher cost of living, being unable to save for a down payment and credit issues are some of the problems. Here are some solutions to these issues.
Saving for a down payment – for those that are first time homebuyers, there are several different programs that can help you with a down payment. There are conventional loans that allow for as little as 3% down, FHA requires 3.5% down. In Minnesota, there is a program with MN Housing that can help you with down payment assistance. Some cities and counties also have down payment assistance programs. Another suggestion I have for buyers is to put extra money in savings, one idea is to look at what you might qualify for in a house payment and if your rent is less than that, put the extra into savings. It will help you grow your savings faster and also you will get used to living with a higher house payment.
Qualifying for a mortgage – Are you worried about qualifying for a mortgage? Meet with your loan officer and see what you can qualify for. I will meet with clients and go over income, assets and credit so they know what they can do. If there are issues, we can talk about them and figure out what you can do. It could be time on the job, credit or just needing to save money. Once you know what you can qualify for, it makes it easier to start shopping for a home.
Home prices – This is an issue in many housing markets. Home prices have increased and with current interest rates, it can make it harder to qualify. Sometimes it’s not just the price of the home, but also the increases in property taxes and insurance that can make it harder to find a home. You may need to look at an older home that you can slowly update or maybe look a little further out. Remember you can always look at buying now, gain the equity over the next few years and use that equity to help you buy a larger home if you need to. Home prices are expected to keep increasing so it may not pay to wait for prices to decrease or interest rates to drop. You can always refinance your home if interest rates do drop.
Higher cost of living – this is affecting everyone but buying a home may help you with some of your costs. If you are renting, your rent may be going up. By looking for a home that you can afford, it may help with monthly costs. Try to pay down debt and increase income if possible, that can help you free up funds for your housing budget. Make a budget and try to stick to it, it may mean less meals out, finding ways to cut back on other expenses.
If you want to buy a home this year, reach out and let’s talk about ways to get you into a home. There may be down payment assistance programs or loans with flexible underwriting requirements that can help you. You never know what you can qualify for until you try!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
