Choosing to own a home is one of the biggest milestones we can achieve in our lives. However, getting to the point of owning a home isn’t as easy as it may initially appear. There are plenty of hoops to jump through, and it can be quite a tumultuous journey. Perhaps one of the biggest hurdles to overcome is getting accepted for a mortgage. A laborious process, mortgage applications essentially put your life under scrutiny, and the bank will go through all of your financial history in order to ensure that you will be able to make timely repayments towards your mortgage loan. However, sometimes our mortgage applications are denied, and this can be a huge setback for prospective borrowers. Here at We Buy Any House, we have compiled our top tips on why your mortgage application may have been denied, and what to do going forward.
Why Your Mortgage Loan May Have Been Declined
Poor Credit History:
If you have a tendency to borrow money, or rely heavily on your credit card, then this may impact your ability to get a mortgage loan. Negative assessment on your credit history may mean you are rejected by the bank.
Not Registered to Vote:
If you arent registered to vote then it is hard to confirm your current address- which may be a reason why you have been turned down for a mortgage application.
You’re in Debt:
If you are in debt, then this will massively reduce your chances of being accepted for a loan. This is because realistically, how will you be able to repay mortgage installments if you are struggling to manage other finances.
Your Earning Threshold Isnt Enough:
Unfortunately, if your earnings don’t match the loan you are after and is required for your property, then this can be quite difficult for you to be accepted for a mortgage- as mortgage lenders may refuse to give you a big mortgage loan which is out of your comfort zone.
You Have a Small Deposit:
The bigger your mortgage deposit, the better chance of your mortgage loan being approved, as you will be asking to borrow less money from lenders.
What Should I Do After I’ve Been Declined for a Mortgage?
After you have been declined for a mortgage, it’s a good idea to try and find out the resaons why your mortgage application was declined, and see if there are any potential ways for you to rectify the reasons. Additionally, it’s a good idea to not begin sporadically applying for mortgage loans, as this could dramatically ruin your score and lower your chances of getting a mortgage in the future. Its important to take care and apply with caution, and try to find reasons why you may not have been accepted.
This article was written by a quick house sale company We Buy Any Home. If you’re wondering “how can sell my house fast”, head to the We Buy Any House website for more information relating to all property related enquiries.