Are you at a point where you can afford the costs of homeownership, but you feel like there are other factors that are stopping you from purchasing a home?
Obstacles to Home Purchase
This is a common scenario, but you may be surprised to learn that a lot of the “obstacles” prospective homebuyers perceive actually do not need to hold them back. Below, we go over a few examples.
- Your credit score. If you are waiting to buy a home until you have a perfect credit score, that is not necessary. In fact, we offer a few different mortgage products that have easy credit qualifications, such as FHA, VA and USDA loans. Because these mortgages are backed by the government agencies in their names, they also come with affordable interest rates. We even offer FHA financing to borrowers with no credit score. Additionally, we have a credit rescoring service that can help you get a quick boost so you can qualify for even more affordable rates. During your consultation, we can explain all of your options to you in detail.
- Your down payment ability. Prospective homebuyers often express concern during their consultations that they cannot afford to make a 20% down payment. But this is also an example of an “obstacle” that is not really an obstacle. Many people purchase homes without putting down 20%. FHA loans are designed to accommodate lower down payment amounts, and it is also possible with conventional loans (given the right qualifications). USDA loans and VA loans do not require you to make any sort of down payment at all. And you do not even need to worry about PMI if you take out a VA loan.
- Self employment. You might worry about whether you can buy a home without a W-2—or how you can account for gig work income even if you have a W-2. The answer is to apply for a self-employed borrower loan. Millions of Americans are part of the gig economy, and many more earn other types of income that is not on a W-2 form (i.e. income from investments). We also have Bank Statement Loans for Self-Employed buyers who maybe don’t show enough income on Tax Returns to qualify for a traditional mortgage. On these we can use the deposits into their personal or business bank accounts as the income used to qualify for their home loan. If you do not have a W-2, you do not need to provide one to buy a home.
- Challenges with interest. Maybe you are in a situation where you can afford to purchase a home, but you could use a reduction on interest for the first few years as you are establishing yourself in your profession. Instead of waiting to buy a home, you can avail yourself of our special 2-1 Temporary Buydown Program. This is a type of fixed rate mortgage that features a lower introductory rate during the first two years. In essence, it represents the best of both worlds: the stability of a fixed rate mortgage, and the special low introductory rate you would get with an adjustable rate mortgage (ARM). Ask us more during your consultation.
- Not understanding the mortgage process or loan products. Sometimes what holds would-be homebuyers back is not any specific financial concern, so much as it is intimidation with the entire loan process. The loan process does not have to be intimidating though, even if you are buying your first home ever, and have no idea what your loan options are or how the process works. When you schedule a consultation with McGowan Mortgages, we will answer all of your questions and explain the loan process to you step by step. You can also check out our YouTube channel, where we have put together a series of videos that explain mortgage concepts and solutions in clear, simple terms.
We Can Help You Overcome Obstacles to Buy a Home
Whatever perceived obstacles you are facing in buying a home, there is a good chance they are much more surmountable than you realize. To find out how we can help you buy a home quickly and easily, please give us a call at (816) 631-9687 to schedule your mortgage consultation. We can work with you in 40 states.