Are you too afraid to apply for mortgages? Does the denial become the reason behind this? If you have a plan to finance a home purchase using a home loan, make sure you will invest in learning about it. We all know that is tougher to get a home loan these days compare to a few years ago although there are so many lending companies and banks provide this loan type. According to the latest annual statistic from the Mortgage banker association, lending institutions only accept about 55% of total mortgage applications. It means that you are competing with others in order to get mortgage approval regarding the lender you are choosing. Do you think about buying a house? It could be the right time to arm yourself with the information that will ensure you are far away from the rejection word when applying for the mortgage loan. We have a list of reasons why some applications get rejected
1. Not providing all required documents
For ensuring that your application is processing, it is very important to check whether you provide all documents required. To avoid making mistake related, double check the documents you already prepare. Then, you can ask the staff of the lending company helps you check what documents that you have to provide too.
2. Pick the wrong type of property
Be aware that not all type of property that you can afford the purchase. However, it doesn’t mean that funding isn’t available for these buildings. The lender will always look at your repayment ability when deciding to approve your application.
3. Poor credit history
Since maintaining your credit score becomes so important, you must ensure that you make no any mistake when it comes to repayments, or you will face unexpected condition, where the credit score becomes one of the obstacles to your next loan application. Ask the lender about the possibility or the percentage of approval when you apply for the loan with your current credit score.