Top 4 Reasons you were Denied a Mortgage Loan
- . Credit
Credit plays a big part in whether or not you get approved for a mortgage. Your credit paints a picture for the lender, it shows whether of not the individual is stable enough to make their payments on time.
If your credit has many derogatory marks, unfortunately that paints a picture of someone who is not going to make their mortgage payment on time. If you need help cleaning up your credit give our team a call, our lenders are magicians at clean credit!
- . Income documentation doesn’t match up
A lender uses a debt to income ratio to tell if you are able to handle a mortgage payment. If you know you can, because you are doing it now, it is important that all your documentation is ready. All money and assets need to be put down on paper and have a trail. Make sure you keep an accurate record of your finances and document all your income. Lenders typically ask for your 2 most recent tax returns.
- . Employment History
Many lenders require at least a 2 year consistent employment history, reason being they want to know you can hold down a job long enough to pay back the loan they have given you. You will also need documentation for this as well, make sure you keep pay stubs!
- . Problems with the property
You may get denied a loan due to the property, if the bank does not see the value or equity in the property, they will not give you the money to buy the property.
If you would like more information on buying, selling or investing in Real Estate give me a call at 951.205.5796 or go to Home Search
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