I'm 61 years old, single, and want to buy a home. What should I do if my mortgage application is declined?
Answers | 5
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.
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.
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.