Have you seen a nice house? And do you want to buy this house? Then it is good to know that certain things can make this process a lot more difficult. In this article, we discuss 5 things that get in the way of buying a home. Of course we also give you tips on how to prevent these kinds of things.
- Your gift money can’t be sourced
If your parents are giving you cash to buy your dream house, there are a few things to take care of. It is important the money can be sourced, so your parents need to make a letter stating that the money is truly a gift. Also, you will need a full bank statement. All the pages of the bank statement must show that your parents were able to gift you that money. Also, your funds need to be in the bank for at least two months (referred to as seasoning).
- Debt collection
Do you have debts? Then in most cases it is not possible to buy a house. Especially if a debt collection agency has been engaged (dutch: incassobureau inschakelen) or seizure (dutch: beslaglegging) has taken place in the past by a debt collection agency (dutch: incassobureau), obtaining a house is difficult. Therefore, make sure you are well informed if you want to buy a house and you have been in debt in the past. Are you still in debt? Then it is important to get rid of this as soon as possible.
- A hard time competing
You are of course not the only one looking for a house. There is a lot of demand and a lot less supply on the housing market. It is therefore important to investigate in advance how many people are interested in a house. Ask your broker for advice and find out which bid gives you the best chance.
- Unrealistic expectations
If you don’t have realistic expectations, it’s hard to buy a home that meets all your needs. Everyone wants to live in a villa for the price of a small apartment, but unfortunately it doesn’t work that way. So make sure you delve into the market and find out what is available with your mortgage for homes. Let your broker also advise you on this.
- Your DTI is too high
Mortgage loan programs ask debt to income ratio (in short DTI) from 45% or lower. The DTI is the percentage of your monthly income that goes to paying your monthly debt payments. If your income ratio is above 45%, there’s little chance you will be able to buy a house. If so, you can check government loans on a case-by-case basis. These sometimes allow for debt to income ratios above 45%.
We wish you good luck buying a house!