How to Overcome the 5 Biggest Obstacles in the Homebuying ProcessWhile housing prices continue to rise across the nation, first-time homebuyers are facing daunting challenges throughout the homebuying process from a booming housing market that also has its downside. Here are 5 big obstacles you can overcome as a first-time homebuyer.


1. Affordability
In a seller’s market, buyers quickly experience the pain of higher prices and, in tighter markets, counter-offers and bidding wars from other buyers. Years of steady increases in home values are outpacing cost-of-living increases. The National Association of Realtors (NAR) reports that in December 2017, the median “SOLD” price for single-family homes oin the U.S. was $247,900—up 5.7% from a year ago. Key Advantages of Getting a Home Loan From a Non-Bank Lender

Consult with mortgage brokers, because they have access to dozens of reputable non-bank mortgage lenders with less stringent requirements than banks.  

The affordability issue is not just about the sales price of a house, it’s about being able to make the down payment. First-time homebuyers can find help by applying for an FHA (Federal Housing Authority) loan. If you qualify, your down payment is 3.5% of your mortgage loan, instead of 20% as charged by traditional mortgage lenders like banks. Top 5 Arguments Couples Should Avoid During the Homebuying Process


2. Poor Credit History
A poor credit history can be a big obstacle in the homebuying process if you only talk to traditional banks. Highly regulated, banks have stricter guidelines and fewer mortgage loan options. Consult with mortgage brokers, because they have access to dozens of reputable non-bank mortgage lenders with less stringent requirements than banks.  FHA loans, backed by the Federal Housing Authority, accept a minimum credit score of 500 with a 10% down payment. If you have a 580 or higher credit score, you’ll pay just 3.5% down. Other factors are considered in the approval process, but an FHA loan could work out for you.

3. Self-Employed
Mortgage brokers have plenty of experience helping self-employed individuals get approved for home loans. Brokers show your mortgage application to dozens of non-bank lenders, thereby expanding your options and improving your odds of finding the perfect match for your situation. Don’t be disheartened by your self-employment status. Talk to a mortgage broker; you’ll be surprised about their depth of knowledge and connections with non-traditional mortgage lenders. It could be much easier than you think to become a homeowner. Should You Both Be Co-Signers on Your Home Loan

Traditional banks offer just a handful of mortgage programs compared to many options available through non-bank lenders.


4. Down Payment
This can be an insurmountable obstacle for first-time homebuyers like yourself, especially if you approach banks for your mortgage loan, instead of non-bank lenders and mortgage brokers. Traditional banks offer just a handful of mortgage program options, compared to non-bank lenders. Mortgage brokers like A and N Mortgage Services in Chicago have access to dozens of non-bank mortgage lenders who routinely offer more flexible programs, lower down payments, lower fees, and better interest rates, all together saving homebuyers thousands of dollars in yearly home loan costs.


5. Availability of Houses
When the housing market collapsed in December 2007, the home-building industry was the first to lay off workers. Today even after the U.S. added over 200,000 new construction jobs in 2017, the industry’s growth rate keeps it from getting ahead of the rising demand for workers. This can be a major obstacle, but not if you look for a realtor who thinks “outside the box” and uses more creative ways to find your dream home. Smart ideas include searching for expired, withdrawn, or “Make Me Move” listings, as well as house rental listings by owners who may be open to selling.  


Armed with the right information, you can knock down the biggest obstacles in the homebuying process one by one and soon find yourself unlocking the door to your new home.

A and N Mortgage Services Inc, a mortgage broker in Chicago, IL provides you with high-quality home loan programs tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.

About The Author

Neena Vlamis, President of A and N Mortgage

Hi, I’m Neena Vlamis and I am the President and Owner of A and N Mortgage. I have ranked in the Top 200 per Scotsman Guide Magazine for many years in a row and have been a Five Star winner consecutively for the last thirteen years. My razor-sharp focus has led the company to an A+ Better Business Bureau rating since its inception.

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