Buyer News: The Biggest Barrier To Getting A Mortgage Now

The majority of prospective home buyers are well aware of how competitive the market has been over the past several years. In the past, people often felt that coming up with a down payment was the biggest hurdle they had to face. Now, you might find yourself having to battle it out with a crowd of other buyers who are all eager to be the ones to move into a house. Understanding the potential barriers that you’ll face with buying a home helps you to start putting together a plan to combat each one.


What Is the Biggest Barrier?

Currently, the biggest barrier impacting buyers is the ability to put down an offer that stands out among the competition. Sellers often find themselves weighing multiple offers, and it is not uncommon for bidding wars to break out. Real estate agents can help guide you through the process of making a stronger offer when you are in the market for homes for sale in LA. Although this is a big barrier to overcome, try to remember that people buy houses all the time. At some point, one of your offers will go through.


How Do You Make a Strong Offer?

In most cases, it pays to take a multi-pronged approach to improve your offer on a house. Making an offer that is several thousand dollars over the asking price is one way that people have overcome this barrier. You can also choose to meet the seller’s needs by waiving contingencies or offering them more time to vacate the house after closing. Buyers have also found success with appealing to the sentimental side of a seller. If there’s a strong reason why you love the house, such as knowing that your kids will enjoy the backyard pool, then putting that into a letter could sway a seller that is on the fence between several offers.


What Other Barriers Could Buyers Face?

Home prices are going down, but many buyers still find the average mortgage to be quite costly. If you can’t find a way to boost your income, then it might help to look for a lower-priced house that has a more manageable mortgage payment. Some buyers are also choosing to purchase homes that they can fix up over time.

Since the pandemic, more buyers are also running into the issue of having poor credit or other types of financial challenges that make them less favorable to lenders. If you are self-employed, then be prepared to show documentation of the income your business generates. If you’ve changed jobs, then you might need to produce multiple forms of paperwork that can cause a time delay with buying a house. Seeking a loan pre-approval can help you finish the phase of getting financial support before you start actively looking for a new house.

Even the most financially stable home buyer will face some type of barrier as they search for a home. Whether your biggest concern is putting down the best possible offer or it is finding a house within your preferred budget, remember that there are professionals available to help guide you through the process. With a little help and determination, you will find the right house and be able to catch the attention of the seller with your offer.