What Do You Need to Get a Mortgage These Days? Owe Money or Pay Cash for Everything?
The ever frustrating mortgage process keeps coming. I had a buyer who was purchasing a home in Spring Hill, Florida. She has a great job with good income, but pays cash for everything which is the way she was brought up. Guess what -she does not qualify for a mortgage. She needed to show 12 months of payments and the only bill she has is her Metro PCS phone, but that is pre paid and Metro PCS will not give her a statement.
She has no outstanding bills, but she also does not have a credit history and that was why she was denied. So are you better owing money?
Where is the middle ground? Owe money and be able to owe more money or pay cash and not be able to borrow? You would think that someone who has good income, does not owe anything would be a great candidate for a mortgage. These lenders need to open their eyes a bit more. The reason they got in trouble in the first place was because they loved to lend to people who owed money; more money than they could afford. They are still using some of that criteria, although a bit more conservative now.
My buyer is crushed she could not buy the home of her dreams, so now she has to start using credit and, hopefully, will soon be able to look again.
We will always keep you posted.
Have a great weekend and enjoy!
Elsie Kempsey & Julie Ludovico
Team Tropic Hernando