The prospect of home ownership glamorizes the property buying process. To many, it’s just a formality. In reality, though, this American Dream is no low-hanging fruit. Being capable of paying a down payment doesn’t guarantee mortgage application approval and affordable house purchase.
If you’re buying a property for the first time, you might hit these bumps in the road:
Not Qualifying for a Mortgage
The biggest setback you could experience is getting denied with your Colorado, New Mexico, or Utah mortgage application. Lenders like Altius Mortgage Group are always open for business, but they don’t entertain all borrowers. Each bank or lending company has unique risk appetite; therefore, requirements vary from organization to organization.
It’s imperative to look for a home loan before searching for a property. Get pre-qualified before exploring the market to determine whether you can get financing. Better yet, get pre-approved to ensure you’re eligible for a particular mortgage beforehand.
Not Receiving a Favorable Interest Rate
Few things are more disappointing than receiving a high interest rate. Fortunately, everything is negotiable. If you don’t have excellent credentials, ask your prospective lender about ways to bring your interest down.
You may be allowed to buy down your rate with mortgage points. Maybe might save on interest with an adjustable-rate loan. Perhaps you can convince the other party to play ball by paying a larger down payment.
Not Getting a High Appraisal
Hiring your own inspector can help you determine the fair market value of the property. This way, you can avoid gaining a foothold in the housing market upside down.
Here’s the potential problem: getting a low appraisal. This would put you in a difficult position to ask the seller to lower the price considering that the property is worth less. If the other party says no, the only options you have are to absorb the difference with cash and to walk away from the sale.
The home buying process can be tricky, and it requires a lot of consideration. If you plan, though, you can prepare yourself to overcome whatever obstacle might arise along the way.