Income is a key piece of what is taken into consideration when applying for your mortgage. When lenders look at your income to qualify your mortgage, they will typically look at three years of income history to verify you have a proven track record of stable income. Learn more about the math behind your mortgage here!
Though you were not able to qualify for a mortgage right now, we want to help you to qualify in the future.
What is limiting your qualifications & what you can do about it.
Because income is an important metric to see how much house you can afford, it is important to note that certain types of income are preferred by lenders. For example; it is typically much more simple and straightforward to get a mortgage if you are making a consistent salary whereas a consistent record of contract income requires much more evidence before approval.
Income being too low for the house you wish to purchase is a frustrating situation and we understand that it may feel extremely limiting. That being said, sometimes it is actually better to finance a smaller loan than a larger one. Though the dream of owning a large and expensive home is extremely attractive, having to finance said home is not always the promised land initially proposed. Having to make expensive mortgage payments every month will limit your ability to spend on all other aspects of your life. We at Blink are wholeheartedly believe in living within your means and sometimes that means working your way up to your dream home over time.
Find another source of income:
Is your dream of buying this home unbreakable? We admire your determination and are here to help! Perhaps the solution is to find another source of income. Having additional income can be the pivotal factor for lenders as it may be the deciding factor that finally secures your approval.
Find a co-signer:
Adding a co-signer to your application can exponentially improve chances of approval for a loan! A co-signer can be a spouse, a family member, and/or a friend who is willing to back up a primary borrower’s application by shoring up weaknesses in the primary borrower’s profile. If a borrower’s income is too low to qualify on their own for a loan, a co-signer may be the deciding factor in approving the borrower’s mortgage.
Self owned corporation is doing well but income is low:
Another potential reason for having this calculator result is personal income being too low while the finances of a self owned corporation are doing well, resulting in the inability to fulfill mortgage requirements. In this particular unique situation we advise making a larger down payment as it will give us more freedom to negotiate your particular situation with lenders.
Want to learn more about the mortgage process and how digital mortgage brokers are the future of the industry? Check out more blogs here and learn more!
Use An Innovative Saving Tool:
Our team at Blink Mortgage strongly recommends Mylo as a unique saving platform that tailors to your lifestyle by rounding up your totals to save money towards a goals, like buying a home or paying off debts, as you spend. We love Mylo so much, we wrote a whole blog about them. Why not check it out here!