Asked by Janet  |  Submitted March 24, 2017

I'm 61 years old, single, and want to buy a home. What should I do if my mortgage application is declined?

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  Answers  |  5

March 27, 2017

Hi Janet,

Congratulations on looking to purchase a home. The key in any mortgage application is working with a knowledgeable, experienced loan officer who can analyze your situation and run your loan through the appropriate underwriting engine BEFORE you start home shopping. Once that's happened, you'll know the price range you should be looking in, and the approximate payment to expect. If you don't qualify initially, ask your loan officer what the underwriting findings stated, and what your 3 credit scores are. Typically, borrowers don't qualify for one of two reasons: credit or debt ratios. Keep in mind that lenders have varying score requirements. For example, some require FHA/VA borrowers to have credit scores of at least 640, whereas others (including my employer) accept scores as low as 600. Whatever the case, your loan officer should tell you what steps to follow to improve either. Bottom line, until you know where you stand on debt ratios and credit scores, it's hard to say what you should/shouldn't do to improve. By the way, lenders cannot use age or marital status as factors to approve/deny loans, they are immaterial. More questions? Feel free to contact me through my profile, I write loans nationally.

$commenter.renderDisplayableName() | 09.18.19 @ 04:58

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April 03, 2017

Credit Manager can provide you with your three credit reports from Experian, TransUnion, and Equifax within minutes.

$commenter.renderDisplayableName() | 09.18.19 @ 04:58

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April 05, 2017

At 61 it makes more sense to rent than buy. Downsize to a smaller, cheaper rental and you won't have to worry about taking care of the house or the yard. Unless you have a large down payment or pension, it will be difficult for a bank to give a 15/30-year mortgage loan. You will be 77/91-years-old, living on a pension, and still trying to pay it off. At this point in life it makes sense to just move to a cheaper location with good weather and low rent. Enjoy life.

$commenter.renderDisplayableName() | 09.18.19 @ 04:58

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April 05, 2017

Hello Janet
A good Real Estate Agent can help you from start to finish, like I did for my client that was a 76-year-old woman on only SSI when she bought her first home. I have lots of mortgage companies that I use that get the job done, and if you're buying in PA, then I can help you, too. You're never too old to buy a house. This client is happy that she will leave something for her daughter and grandchildren when she's gone.
Good luck to you, Janet.
Mary

$commenter.renderDisplayableName() | 09.18.19 @ 04:58

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April 06, 2017

Hello Janet. I think you should ask yourself why you want to buy a house now. Make a list of pros and con. As I mentioned earlier, does buying a house makes sense for you now? Yes, if you have kids and want to pass it down to them, and as long as you have some equity in the house, then it will be a great gift (depending on home appreciation and payment). If you don't have any kids, then what will be the benefit of owning a house at your age (considering home repair, yard work, etc). Mary mentioned helping a 76-year-old purchase her first home on SSI only. I really hope she doesn't pass her debts to her kids.
Janet - talk to someone first (like a financial advisor or friend who is financially smart). Then, if you think buying a home makes sense, talk to a good realtor.

$commenter.renderDisplayableName() | 09.18.19 @ 04:58

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