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10 Reasons Home Buyers Can't Get a Mortgage

One might think that the huge stocks of housing available for purchase nationwide that loans would be closing with the click of a mouse trap!

As a loan officer licensed in several states, I can tell you unequivocally that the Illinois mortgage loans, mortgage loans and mortgage loans in Wisconsin, from coast to coast are increasingly difficult to close.

The good news is that it is a buyer's market, prices are reduced and they are the selling price. The bad news is that most of the inventory comes from short sales and foreclosures.The high rate of default makes lending test your skills with the tenacity of Dr. Temperance Brennan of Bones!

You want to buy a house? Make it easier for you and your loan officer being aware of the top 10 reasons buyers can not obtain a mortgage loan:

1) Bad Credit. Before applying for a loan have an idea of what your credit score and also how your credit history looks like. Most government loans require a credit score of 640 average, while most conventional loans are closed at least 700 points.

Ask yourself: Do you have at least three business lines? Your high balances (the limit) or do you pay each month? Do you have any collections? All these play a role in determining if you have a good or bad credit.

2.) First Home Buyers? It is slightly more difficult to close a loan for a first home for someone with a proven mortgage.

Ask yourself: Do you have a verifiable rental history? Do you rent from a private party or a management company?Always save your canceled rent checks, you may be prompted to provide it!

3.) No down payment? It takes a little money to buy a house. If you do not have the minimum 3.5 percent for Federal Housing Administration loan, or 10 percent to 20 percent required for a conventional purchase, you may be turned down. If you are short of cash, you might consider asking a relative or a close relative to provide "gift money" to use as your down payment or reserve requirements.

4) Employment:. Be sure to disclose your employment history to your loan officer.

Ask yourself: Do you have a history of 24 months of work in the same field? Do you receive a Form W-2 or are you self-employed? Have you been unemployed recently and if so, did you collect unemployment benefits? "