Did you know there are 2 options that you can use when buying a house? Apart from buying the house in cash, you can apply for a home loan. Getting a home loan is the best option for most people.
Do you know taking a home loan can be frustrating? Apart from looking for the best mortgage lender, you have to give your financial documents to the lender.
However, people still end been denied a loan due to various reasons. In this article we will look at reasons why you might not qualify for a home loan and how to work on that.
Do you have a low credit score? Looking for a credit score before you apply for the loan is important. Different mortgage lenders have different credit scores. Did you know you need a credit of over 760 to qualify for a home loan? Try and solve any debt that you have before you apply for the home loan, so that your credit score can rise.
Did you know having too much debt reduces your chances of qualifying for a home loan? A mortgage lender will look at your credit score and financial records to determine, if you qualify for the loan.
Also, you will be denied a home loan, if you dont have enough money for a down payment. Gone are the days when you were not required by the mortgage lender to make any down payment for the house. To avoid getting denied the home loan, it is advisable you have some cash that you can use to make the down payment.
Do you have spotty employment records? If you keep moving from one job to another within a short period, most mortgage lenders will not feel confident giving you the home loan. Most mortgage lenders what to give the loan to somebody who has their professional life in order, such a person will not have a problem paying the loan since they have a stable job.
For people who have declared themselves bankrupt, chances of them getting a home loan are minimal. The bankruptcy record will appear on your credit report for 7 to 10 years. If you have a bankruptcy record on your credit report, instead of applying for the home loan alone, consider involving a mortgage broker.
Apart from bankruptcy, you can be denied a home loan, if you have faced a foreclosure before. Well, your dream for getting a home loan does not have to die because you have faced foreclosure before, look for a mortgage broker to help you out.
If you are asking for a home loan that is too large, the mortgage lender in most cases will deny you the home loan.