Very few homebuyers can afford to buy a house upfront with cash, which is why banks and other financial institutions offer purchase home loans. Also known as mortgages, these types of loans let you make monthly payments to pay off the money you borrowed and the interest charged on that loan. If you can not get approved for a mortgage in California, try implement these few easy tips below.

Improve Your Credit Scores and Over Credit Report:

When applying for a home loan in California, the lender looks at your credit history and credit scores first. Your credit history contains a long list companies you borrowed money from in the past and present, it also shows your total debts, medical bills and if you had any foreclosures, late payments, collections, judgments and bankruptcies. Your credit score is a three digit number based on your ratio of debt to credit, any defaults on your account and any other issues will have an effect on your over all credit profile.

If a lender denies you for a home loan, get your credit scores before you apply again with another lender in California. Even something as simple as paying off more of your debt (pay the revolving balance debt down or off, do not close the account, leave it open) can increase your scores by a few points. Eliminating bad debts and removing any mistakes from your credit report can also increase your credit scores. 

Apply with a Cosigner, like a family member:

Applying for a loan with a cosigner is another option for those with credit issues or debt to income ratios that do not meet underwriting guidelines. The co-singer can help the over all pre-approval when you are applying for a purchase home loan. You want to find someone with a close connection to you such as a family member and someone who has a good credit scores.

Your cosigner will be agreeing to be responsible for that mortgage as well if you happen to default on that loan. The loan will also appear on the cosigner's credit report, which means you need to find someone who is willing to take a chance on you.

Look for Less Priced Home in Southern California:

When applying for a home loan, the lender looks at your credit history, your income, the ability for the down payment and other important qualifying factors to determine how much money you can borrow on a purchase home loan. Applying for a more expensive home might result in a rejection for that higher priced home. The lender will determine based on the information supplied that you may not be able to budget at a certain purchase price, applying for a home that is priced less might help your monthly budget to be able to qualify for a home loan.

It is possible for you to obtain a mortgage that meets your budget and buy a home of your dreams. Applying with a cosigner, improving your credit and looking at a different price point might help your chances in obtaining a full loan approval.

I welcome the opportunity to discuss your goals on purchasing a home in Rancho Cucamonga California. Please complete a short inquiry form HERE or call me directly at 909-503-5600. I look forward in hearing from you and reviewing your plans of homeownership.

by Nathan Rufty