Are You Buying and Have to Sell First? 3 Reasons You May Not Qualify for a Home Loan
Before I list a house for sale, I like to make sure my sellers are pre-approved buyers for their next home loan. I can’t tell you the number of horror stories I hear from other agents who didn’t find out if their sellers could qualify for a home loan before they sold their current house.
Here are 3 reasons to make sure you’re pre-approved and have gone through the loan underwriting process before you list your house for sale:
- Unexplained gaps in your employment – have you changed jobs in the last 2 years and is your new position in the same line of work? Do you work somewhere that is known for major layoffs?
A few years back, I had a potential seller who worked for Sprint…needless to say, he couldn’t get approved for a new home loan because his employer couldn’t guarantee he wouldn’t be laid off.
- The income used to qualify for your mortgage needs to be documented by your employer. Do you receive commissions, bonuses or overtime pay that aren’t guaranteed? You may not be able to use those funds to qualify for your new home loan.
- Have you filed your taxes and paid any unpaid amounts owed? If not, you will probably not get approved for a home loan at this time.
These are the 3 biggest reasons you should provide your mortgage lender will all of the documentation necessary prior to putting your house on the market. Make sure he runs your credit and documents your income before he submits you to the underwriting process. You need to know you can buy your next house before you sell your current one.
If you are thinking of selling and want a referral to one of my lenders that will look out for your best interests and not their own, please call me at (913) 515-3250 or contact me here.
If you would like to receive an online review of what your house is worth in today’s market, get the value here based on current listings and recent homes sold in your neighborhood.