At some point in life, everyone would want to purchase a home before which they can raise their family in and spend their old age when they retire. Purchasing a home is a huge process, especially when you do not have the fees upfront. Mortgages have made home purchases convenient for many people. Lenders will look out for several factors before they approve your mortgage loans. With the right qualifications, it is easy for you to get a mortgage loan. Getting disapproval for a mortgage is as easy as getting it approved
Here are some of the reasons your mortgage application failed
What is your job status?
The non-employed and self employed people are less likely to get mortgage loans compared to employed individuals. One of the reasons you may have lost your mortgage application is because you recently lost your job. For most lenders, the standard employment period for mortgage approval should be at least three years in the same company. Lenders want to make sure you have a consistent income and a permanent job so you can be able to clear the monthly payments.
You have a low income
Lenders check your income, credit history and other commitments to ensure you have enough disposable income to clear the payments before they approve the loan. You may be having a permanent job but your income may not be enough. Too many loans and commitments to your salary will lose you any mortgage deals. If you fail to submit all information concerning your salary, you are probably not going to get any mortgage approvals
You have a poor credit history and report
The credit report and history are one of the main things lenders check to determine your qualification status and how much you should get. The credit score is enough for lenders to assume your financial stability. Usually, a bad credit report means you have unpaid bills, impeding loans, late payments and a poor credit history. Lenders will assume that you have a hard time dealing with loan payments and therefore disapprove your mortgage application. Most lenders have a difficult time trusting people with a poor credit history. They want to ensure that you will make all the payments on time before they approve the loan.
The down payments
Mortgage brokers will require a down payment of the cost of the house. The minimum down payment is set around 5% and the maximum is around 30 depending on the broker. Lenders do not provide any individuals with the full cost of the home as mortgage. The more down payments you make, the higher your chances are for qualifying for a mortgage. Most lenders won’t accept your application if the down payment is lower than the minimum.
The final word
If you are over 45 and under 18, you are not going to qualify for a mortgage. This is because, most people between this age brackets probably don’t have a steady income. Always ensure you check out a broker’s qualification before you apply for mortgage.