Filling out mortgage application can be a tedious job that not many of us like doing. It is important to give it a few extra minutes and complete the application carefully with all details correctly and fully mentioned. There are several reasons for a mortgage application to get rejected, a few of which are discussed here.
Areas where you went wrong
Baffled with a mortgage rejection? Well, one of these may have been the reason!
- Unsuitable credit history – A lender will check your past records to see how well you have managed your finances – both incoming and outgoing, to decide if you will be able to manage a mortgage. Poor credit history equals rejection.
- Insufficient credit history – Quality and quantity matter with this one. Those who have been using only cash for all transactions and have never had a loan or credit card in the past don’t have any credit history to be checked.
- Employment issues – Be sure to be gainfully employed for a good amount of time, on a regular basis before you apply for a mortgage. How stable you are with your earnings is a deciding factor for mortgage lenders.
- Incorrectly filled application form – By deliberately hiding information or omitting to mention important details, you are giving an opportunity for the lender to reject your application. For this issue, using a mortgage broker is beneficial as he/she can check your form and give you advice on filling it before submission.
Steve Morgan of Bethany Beach lender is a reputed mortgage broker who helps you understand the reasons of a loan rejection before helping you to tackle them. Be sure to hire the right broker to avoid frustrating mortgage delays and rejections.