There’s really no shortage when it comes to mortgage qualifying guidelines. At least it can seem that way, especially so if you’re wading for the first time in the proverbial home loan waters. We’re not going to go through them today, it would take forever to do so, anyway. But one thing that most approval requirements have is a history. In other words, when lenders look at a credit report, they want to see a history of decent credit. Lenders also want to see a two-year history of employment, at minimum. Sometimes though, some of these guidelines seem a bit out of reach. At least for the time being.

For example, let’s say you’re relatively new in the workforce and don’t quite have that two-year history. Close, but not quite. Lenders really can’t get around this guideline so all one can do is wait until that two-year timeline has been reached. Or maybe the bonus income you’ve been looking forward to won’t be available until the end of the year. 

Let’s say you’ve been looking for your first home when suddenly your dream home hits the market. Still, that darned two-year thing is holding you back. What can you do? You can certainly wait. Or you might ask the sellers to help out a bit. How can they? Well, they might act as a lender, at least in the near term. If the thought of seller financing has crossed your mind, there are some things you can do upfront that might help push that request across the goal line.

First, be ready to explain why you’re not able to obtain bank financing. If you’re waiting on the two-year thing, tell them. Maybe there was the matter of a slightly bruised credit report. Whatever is holding you back, put that out front and center. But you’ve also got to make it worth the seller’s while.

You can expect to offer a slightly higher interest rate than what banks are currently offering. This is something you can pretty much count on. You can also count on coming up with a larger down payment. Finally, you should also expect a shorter loan term, such as one year or whatever time you need to meet the traditional approval guidelines. Show them copies of your paycheck stubs and your bank statements showing sufficient income and available funds.

You probably want to have some legal help here to draw up your contract, so you’ll need to pony up some cash for that too.

Yet being properly prepared can mean you can get the home you want after all. It’s a true win-win.