HICKSVILLE, N.Y. (STL.News) – Most people are progressing to the next stage of their life when they decide they want to buy a home. For many, this can be an exciting experience, but for some, it can be quite disheartening. In 2017, nearly 11% of mortgage applications were denied, which halts potential buyers from entering the world of homeownership. It can also be confusing for those who believed they were in good financial standing. Real Estate Attorney Long Island, Markotsis & Lieberman P.C., lists and explains 4 reasons your mortgage application was declined.
History of Poor Credit
One of the most crucial factors when approving someone for a mortgage is determining whether they will be able to pay the loan, and on time. This prompts the lender to review your credit report, which shows both your credit history and credit score. They will know whether there is a history of late payments. A prior bankruptcy may also make a lender reluctant to give you a loan.
You Left Out Information On Your Application
Whether it is intentional or not, leaving information out on your application can affect your ability to get approved for a loan. Sometimes it is an accident, like leaving out a number on your yearly earnings. However, this can massively affect how lenders look at your finances. In some cases, people try to omit information that can worsen their financial image, such as owing child support or money to the IRS. However, an application must be completed truthfully and accurately.
No Proof You Can Meet The Down Payment
If you don’t show documentation and proof that you can make the down payment, a lender may reject your mortgage application altogether. It’s one thing if someone stops paying their mortgage down the line due to unforeseen circumstances, but if a lender sees you don’t have the funds to support the initial payment, they won’t take the chance with you. One way to avoid this is by having a significant amount of money saved before applying for a mortgage.
Your Job Has Changed
Another important component to lenders is proof of steady employment. If someone is either out of work, goes months without working, or is constantly changing jobs, they may not have their mortgage application approved. Lenders want to be able to rely on you to make the monthly payments, and if your job history is shaky, they may believe you won’t be able to come up with the money each month.
About Markotsis & Lieberman, Esq.:
arkotsis & Lieberman, P.C. Real Estate Lawyer is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you’re facing a complicated legal situation, our team of legal experts is there to fight for your rights.