1. Lack of or Bad Credit
The number one area of concern is always bad credit. A late bill from 5 years ago may not have seemed like a big deal at the time- but it is now an issue. Maybe you were slowing paying your credit card bill and now that come up. Bad credit can be improved with time- the trick is to find out now that you have an issue by calling a lender and getting to work.
Strangely enough - lack of credit can also be an issue. Debt free is the way to live unless you want to buy a house- then the frugalness can hurt you. Keep in mind that lack of credit can also be addressed with a lender- they may be able to help you get a credit history.
2. Low or no Down payment
While still available under limited circumstances- there are no longer many options for loans that do not require a down payment. Most lenders will want at least a 3.5% down payment for an FHA loan and maybe as much at 10% for a conventional loan. While this may seem daunting you may receive a gift from a family member to help out. Also start saving now for the future - that cup of Starbucks may be keeping you from your new home.
3. Too Much Credit
OK so you have some credit cards and a car loan and a store charge card- you needed credit correct? Well know issue number three is too much credit. That's correct you can have too much credit. If you debt-to-income ratio is too high (meaning you have too many bills for your income). DO NOT start just paying off bills- talk to a professional lender and they can help. There may be one bill to pay off that is better than another- so talk to a lender.
4. I need a Job?
Your lender will look into your employment history and may require as much as two years in your current job - this may change based on career and other factors but you really need a stable job history for a loan. Stop job jumping- it may hurt your buying power.
Keep in mind that you probably will qualify for a loan without any of these issues and best yet these can all be overcome with help and time. Feel free to give us a call and we can recommend a lender that can help. Start here with your Louisville Homes Search