Homes Sales in Key West: Buyers frustrated over process.

Homes Sales in Key West: Buyers frustrated over process.

Buyers are becoming frustrated with the mortgage process. Many buyers cannot get credit because of the tight credit market. Over 2 million people were turned down last year according to the Federal Financial Institutions Examination Council.

 

The most common reasons for rejection are:

 

1. Bad Credit scores are now between 620 and 660. The bank usually says no to thee buyers automatically.

 

2. Not enough income. This is a no brainer and will never change.

 

3. Paperwork glitches. Missing forms, incomplete information on the application can slow or stop the process. 15% of of application are slowed down because the buyer did not complete the application correctly or provide proper documentation.

 

4. Homeowner Association issues.

 

5. Problems in the neighborhood. If the neighborhood is in decline. broken into distressed homes with major repairs needed are often a black mark on the appraisal.

 

6. Appraisals. If the home doe not appraise the banks won't lend.

 

7. Bank Conditions. Underwriters all want something different. Each bank has a different set of rules and documentation requirements.

 

8. Gaps in employment history can wreck havoc on a buyers chance of getting a mortgage. Overtime income must be consistent and documented. Even rental income is scrutinized.

 

9. Discrepancies in tile work, contracts or name inconsistencies. Paperwork

 

These are all obstacles that can be overcome in time. When getting ready to buy a house you must seer a lender as soon as possible. Going into see a lender prepared with 2 years of tax returns, 2 months of bank statements, 2 pay period pay-stubs and a willingness to get what is necessary for your lender.