Why Do Banks Reject Mortgage Applications in Crown Heights Brooklyn?

Mortgage and Lending with TD Bank 466521

Why Do Banks Reject MortgageBrooklyn CH

Applications in Crown Heights Brooklyn?

Discover Top Reasons of Mortgage Application Rejections and How You Can Avoid Them

Why do banks reject mortgage applications in Crown Heights Brooklyn NY. Getting a mortgage loan approved is no easy feat nowadays. Bank policies have turned a lot stricter in the past few years and today only 55% of the overall mortgage applications get approved. If you are thinking about a new home or a refinance, you need to know all the facts beforehand to avoid any problems later on.

What exactly are the reasons that result in a loan rejection? What criteria do the banks use in judging an application and how can you get your loan approved? Keep reading to find out.

Reasons of Loan Rejection

You Haven’t Documented Your Income Properly

When filing an application for a mortgage, credit score is not the only thing you should be worried about. Your income details are equally important and help clear the way for a smooth loan transaction. Several factors can affect your document profile, including frequent job switching. Thus, aside from your cash reserves and your credit, do keep an eye on the extra factors such as tax payments, professional experience, previous track record etc too.

Mortgage approval 2You Are Ignoring the Compensating Factors

Even if your previous track record is a little weak, there are several compensating factors that can make up for the hitch and increase your chances of a loan approval. These include a down payment greater than 20%, cash reserves and savings, a credit score higher than 740 etc. 

You Haven’t Chosen the Right Property

The choice of property matters a lot. Make sure you choose a property that is not only reminiscent of your lifestyle but also falls in your budget. If you are applying for an unrealistic loan that you can’t even afford in the long run, it is most likely going to be rejected. Also, there are certain kind of properties that are difficult to get financed, like second homes and investment properties. 

The Appraiser isn’t Qualified Enough

Appraisal is one of the most important steps of investing in a property. Make sure you hire a professional and experienced appraiser who conducts a physical appraisal of the property. Relying on sales figures of the neighborhood and online values is not enough – you need physical evidence to assure your lender about the authenticity of the loan. 

The Mortgage Broker is Inexperienced

Choosing the right mortgage broker is also important, as it is he/she who will be making the final deals with your lender. Choose a licensed and experienced mortgage broker to avoid any problems in the future. 

You Aren’t Aware of the New RulesBrooklyn Crown Heights 2

Even if it all goes smoothly, be aware that there are certain government imposed rules and laws that are applicable on loan applications. To stay on the safe side, do your research before making the final plunge and make sure your documentation and record supports the loan and property you intend to get.

The Choice of Bank is Wrong

It is never a good idea to take up the first loan by the first bank that comes your way. Choosing your bank and then your mortgage plan is a critical factor, and not only does it affect your mortgage application but can also save you a lot of money. Choose a reliable and reputable bank and then go for a loan package that best pertains to your needs and requirements. 


Following these ground rules will bring you one step closer to loan acceptance and you will be all set to move into your new home! 


Why do banks reject mortgage applications in Crown Heights Brooklyn NY. Tony Busanich is a loan officer with TD Bank, a portfolio lender from Maine to Florida. You can trust TD Bank to deliver a superior mortgage experience. Whether you’re purchasing or refinancing, we provide straightforward, easy-to-understand products and advice, allowing you to make smart borrowing decisions that meet your needs today and tomorrow. My web site at www.tdbank.com includes mortgage rates updated every morning. You can run different scenario that  include monthly payments, different programs and closing cost. Please contact me at 732-306-2231 or by email anthony.busanich@td.com and on my website at www.tdbank.com

Comments (14)

Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent information for prospective mortgage borrowers and their buyer agents.

Happy Holidays!

Dec 12, 2013 04:18 AM
Tony Busanich
TD Bank - Freehold, NJ

Roy, thanks for the comment its a great post to pass on to anyone starting a mortgage.

Dec 12, 2013 06:44 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Very COMPREHENSIVE post about the mortgage process and why you should choose wisely the first time around!

Dec 12, 2013 09:51 AM
Tony Busanich
TD Bank - Freehold, NJ

Renne- Thanks for commenting on my post 

Dec 12, 2013 09:56 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Tony, The reasons can usually be found and if we are diligent, we can head some of them off in the beginning.

Dec 13, 2013 10:46 AM
Tony Busanich
TD Bank - Freehold, NJ

Thanks Debbie, that's soo true being proactive can save you money in the long run. 

Dec 13, 2013 11:19 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Have a wonderful weekend. Be sure to have your camera in hand to capture the special moments.

Dec 14, 2013 03:16 AM
Tony Busanich
TD Bank - Freehold, NJ

Thanks Roy for commenting on my post, it's going to bea wonderful time.

Dec 14, 2013 03:31 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Great post - buyers need to be proactive in researching mortgages and finding the one that fits their needs best.

Dec 14, 2013 06:53 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks, Tony.  Excellent information for consumers about the mortgage process.

Dec 14, 2013 09:20 PM
Tony Busanich
TD Bank - Freehold, NJ

Gabe, thank you for commenting on post.

Dec 15, 2013 07:45 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Tony those are all excellent reasons why a mortgage application would be rejected.   I hope readers of your post who are considering buying a house use this as a checklist.

Dec 15, 2013 02:50 PM
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Tony this blog is very informative. Didnt know that today only 55% of the overall mortgage applications get approved. Thanks for sharing. Great post.

Dec 18, 2013 08:06 AM
Tony Busanich
TD Bank - Freehold, NJ

Yes, Lanre 55% of application get approved, so when you looking for financing you should keep in mind who your working with and how professional they are.

Dec 18, 2013 10:12 AM