Here are a few options to consider during the qualification process:
- Choose an ARM, which should have a lower initial interest rate
lowering your monthly payments.
- Consider a "temporary buy down," of the interest rate.
This would allow you to qualify for a substantially higher mortgage
amount because the lower interest rate reduces payments during
the early years of the loan.
- Restructure your debt by paying it off with savings or a gift.
Or, reduce your monthly payments through debt consolidation or
refinancing.
- Add a non-occupant co-borrower to the mortgage (a parent or
close relative who won't live at your house, but who would be
equally obligated to repay the loan).
Your Mortgage Broker can help you determine which qualification
strategies will work best for you. Remember, their role is to make
this process as easy as possible for you while also meeting all
of your short and long term home financing objectives.
TIP: Keep Money Aside — Don't spend all
of your money on the down payment and closing costs. "Incidentals"
can add up quickly and you'll want to have some cash for moving
expenses, new window treatments, landscaping - and of course everything
from caulk and painting supplies to lawn mowers and ladders. In
fact, in some cases your lender may require that you show evidence
of having at least two months of house payments after closing. |
