Benefits And Pitfalls Of Buying A Home Using A Private Lender In Bothell
If you are having a problem getting a mortgage with a bank or any other type of financial institution, you may be thinking about getting a private lender in Bothell. In a few cases this can work out, but for the most part you are better off waiting to improve your financial situation before going ahead with a private lender.
If you have been given a definite no from a bank regarding a mortgage, the first thing you need to do is find out why. Usually the answer will be given in a sentence or two such as “Your income doesn’t qualify you for a mortgage loan” or “You already have too much debt to handle”. These sentences, and ones like them, need to be qualified. You need to know exactly why you were turned down for this loan so that you can correct it.
If you aren’t making enough money to get a loan for a new home in Bothell find out how much money you would have needed to earn in order to qualify. This gives you a good idea of what type of income you would need to have. This will also be based on your down payment. Go through the amount of the down payment you would need to qualify on the income you’re currently making. This will give you a figure to work with.
To be fair, there are instances where the bank should be loaning the money but refuse to. One example of this would be a self-employed individual that is making a high income with little debt. Banks often look at self-employed people as a high risk, even when their income has been stable for quite some time. In this case, your best bet is to approach a mortgage broker and find out if there are any private lenders available in Bothell for people with a good self-employment track record.
One thing is for sure – never answer an ad that has been listed on the Internet or in the newspaper for a private lender. These are usually scams. There are legitimate private lenders in Bothell that work with reputable brokers to finance people that qualify.
This blog is courtesy of Adrian Willanger at Coldwell Banker Danforth & Associates 206 909-7536 helping people buy and sale homes in the Greater Seattle area
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