Have you tried making your first mortgage application? If you have, you will probably have been rejected. Getting the first mortgage is more difficult than ever. The tough mortgage application process has become even more difficult as lenders look to find only clients that can afford the loan repayments, and have shown a tendency to pay their debts in the past the thorough process results in rejections for most first time applicants. These are the most common reasons for rejected mortgage applications.
Administrative errors are more costly than you would believe. Many applicants are getting their applications rejected on account of accounting, spelling and typing errors. Cancellations also attract a negative review from lenders. If your application is not properly worded, or if your figures are mismatched, you will not be successful. Most borrowers overcome this by hiring a mortgage broker to help them make their application. You may also consider using a face-to-face interview to improve your chances.
Lenders will be wary about offering mortgages to people without a steady source of income. This usually requires that borrowers are employed when making their application and that they have stayed for some amount of time in their position of employment. Self-employed people often have their applications rejected because of this. When making your application, remember to include proof of employment. if you are an entrepreneur, you could consider attaching key financial documents to help show your incomes and expenditures over a long period of time, at least about three years.
Having a great credit score will boost your chance of getting your application approved. In fact, most lenders have a minimum credit score requirement for their mortgage loans. Clients who do not meet this requirement will have their application rejected from the go. It is important that you know the minimum credit score requirement before making your mortgage application and your own score too. This way, you will only make an application if you meet the requirement. For clients that do not, you can take up and repay loans to increase your score. Finding a mortgage broker is a great alternative, as they will help you get your credit score right before applying.
If you have made an unsuccessful mortgage application in the past, you will stand a higher chance of getting rejected. Your application history is accessible by your current lenders. They will know that your previous applications were rejected, as well as the reasons given for the rejection. If you continue making unsatisfactory applications, you will get more rejections, which will affect your ability to get a mortgage. To counter this, you should consult with your mortgage broker and develop an application that has the best chance of success.
Your online activity could determine the success of your mortgage application. If you take too many unsecured loans, or are engaged in online gambling, your application will probably be rejected. Lenders do not approve mortgage requests for clients who have this type of expenditure as they are deemed too unreliable. It would be better to make your application through a mortgage broker.