Buying Your First Home? Here’s What Can Disqualify You
If you’re thinking about buying your first home in Ventura County, you’re probably excited—and maybe a little overwhelmed. I get it! As a local realtor, I’ve seen plenty of buyers get disqualified for reasons they didn’t even know were a problem. The good news? Many of these pitfalls are completely avoidable with the right preparation.
Let’s go over some of the biggest mistakes that can put your homeownership dreams on hold—and what you can do to stay on track.
1. Low Credit Score or Credit Issues
Your credit score is a huge factor in qualifying for a mortgage. Most lenders look for a minimum score of 620 for conventional loans, though there are lower options for FHA loans. If your score is too low, you may:
✅ Get a higher interest rate
✅ Need a larger down payment
✅ Get denied for financing altogether
💡 What to do instead: Check your credit report for errors, pay down debt, and avoid opening new credit accounts before applying for a mortgage.
📌 For credit improvement:
Your credit score plays a huge role in getting approved for a mortgage. If you’re looking for ways to boost your score, check out my post on How to Improve Your Credit for a Home Loan.
2. Changing Jobs Right Before Buying
Lenders want to see stable income, so switching jobs right before applying for a mortgage can raise red flags—especially if it’s in a different industry or you become self-employed.
💡 What to do instead: If possible, hold off on major job changes until after you close on your home. If you do switch jobs, make sure it’s a move that increases your income and is in the same field.
3. High Debt-to-Income Ratio (DTI)
Your DTI ratio is the percentage of your income that goes toward debt payments. If you’re already carrying a lot of debt, lenders may see you as too risky.
Most loan programs prefer a DTI below 43%—meaning your total monthly debt (including your new mortgage) should be less than 43% of your gross monthly income.
💡 What to do instead: Pay off as much debt as possible before applying for a mortgage. Prioritize credit cards, car loans, and personal loans.
4. Not Having Enough for a Down Payment & Closing Costs
A lot of buyers focus on the down payment but forget about closing costs, which can be another 2-5% of the home’s price.
💡 What to do instead: Start saving early! Look into down payment assistance programs available in Ventura County, and get a clear estimate of total costs before making offers.
5. Making Big Purchases Before Closing
Once you’re pre-approved, don’t rush out to buy furniture or a new car. Lenders re-check your finances before closing, and any major changes (like a new car loan or maxed-out credit card) could cause your loan to be denied at the last minute.
💡 What to do instead: Keep your finances steady until you get the keys to your new home!
6. Not Having a Paper Trail for Your Money
Lenders need to verify where your down payment and closing cost funds are coming from. Large, unexplained deposits or cash gifts that aren’t properly documented can delay or derail your loan approval.
💡 What to do instead: If you’re getting a financial gift for your down payment, make sure it’s documented properly with a gift letter from the donor.
7. Skipping Mortgage Pre-Approval
Some buyers start house hunting before getting pre-approved, only to find out later that they don’t qualify or can’t afford the homes they love.
💡 What to do instead: Get pre-approved before you start shopping! This will help you understand your budget and make your offers stronger.
Let’s Make Sure You’re Ready to Buy!
Avoiding these pitfalls can make the difference between getting approved or missing out on your dream home. If you’re thinking about buying in Ventura County, I’d love to help you get prepared and connect you with trusted lenders who can guide you through the process.
📅 Let’s chat! Schedule a time to go over your home-buying goals: [Link to Contact Page]
Or, if you’re ready to explore homes in your price range:
🔍 [IDX: Search First-Time Buyer-Friendly Homes in Ventura County]
Have questions? Drop me a message—I’m happy to help!
