Top reasons your Mortgage Loan Application was declined
- Poor Credit History
Your credit history is a great way for a lender to tell whether you’re a risky investment or not.
- Insufficient Income
A lender can tell if you’re able to afford a mortgage payment by looking at your income to debt ratio.
- Down Payment is Too Small
A lender looks at the down payment as an investment in their future home, so a low down payment does little to put their mind at ease.
- Problems With the Property
A denial doesn’t always have to do with the homebuyer. Sometimes a property’s value isn’t enough to back the amount of the mortgage loan being applied for, and therefore is denied.
- Inadequate Employment History
A consistent employment history can be a very valuable thing when applying for a home mortgage loan. Source: bluewatermtg.com