Applying for a mortgage is one of the major factor and a step closer for a homebuyer to own their home. Big financial institutions offer such competitive interest rates to make it easier for anyone. In general, there are several types of loan that you can apply for, but that depends on the type on which best suits you. Once you have decided on which loan is the most viable option for you, it just doesn’t stop there. You would need to fill out forms, submit all necessary supporting documents and pass their background check. Chances are either you will get approved or denied. It is more than just fingers crossing but it is how you present yourself as a potential good paying homebuyer.
When you get approved right away, that is the same as singing the sweet sound of success. But what if it turns the other way around? Normally, a homebuyer’s notion is to try another lender. But that should not be the case and you are doing it entirely wrong. When rejected from getting that loan approval, most likely you will be informed in writing. Some of the reasons for loan rejection would include:
• Insufficient income, employment history or documentation – this will determine how you are able to make your monthly mortgage payments, or whether you have the means to earn the money to make the payment
• History of bankruptcy or foreclosure – having a bad history especially when it comes to financial matters can impact your application
• Credit rating does not meet the minimum requirements – this can be built over time but when you make the right decision by repairing your credit rating, then you are likely to be on the right track.
• Lack of documentation and/or incomplete application – these documents are paper works needed in order to prove and support your financial capability of paying the loan on a monthly basis
• Insufficient down payment – this is a take away. A down payment reserves you to that certain property and you are serious into buying a home.
• Probability of being able to pay debt with your income does not meet the lender’s parameters – do not bite off more than you can chew. Taking out another loan while you are still paying for another one would only make your life hard. Best to pay off some debts or find a lower priced one so the chances of getting an approval will be higher.
Bear in mind that lenders will see how you are able to make mortgage payments each month without having to compromise your monthly budget. Also, required minimum credit score is one of the factors to consider in order to get your loan approved.
The Middle TN real estate market is growing stable and stronger. This is due to the fact of growing population and booming economy. If you are one with a start-up family and thinking of starting into owning a home as early as now, talk to an expert and discuss your options with your family members in order to get a 100% rate of obtaining that mortgage loan application approved.