Some Common Mortgage Troubles and Some Solutions
If you are finding that your mortgage applications are getting rejected, there may be some things that you are missing. Here are a couple of the most common mortgage troubles that can get your mortgage application rejected by the lenders whose job is to check if you can get approved for one.
First thing that you should check is the amount of debt that you have. Is it really that big? Is it so big that it may cause the lenders to feel weary about lending you money? You better look this up since this may be a major reason why you are getting rejected. Ideally, your debt should be no more than twenty percent of your income.
If you find that your debt is indeed more then 20% of your income, then you can start paying it off slowly so that it gets smaller and hopefully gets small enough that your mortgage will get approved by the lenders. You can also try to apply for a loan that is smaller in amount. This could be one way that you get that loan approved.
Another thing that may be a factor is if your income is simply not enough. You have to know that when you get a mortgage, you are basically in debt and that the lender s will have to check your capacity to pay back your debt. How do you expect them to approve a loan when your income indicates that you will not be able to pay it off?
If you are bent on getting a loan, you can ask your parents to be so-signees of your loan. You may also try to present a bigger down payment to the lenders. By doing this, you may be given higher interest rates. You can also try applying for an amount that is within your reach. There is no harm in this and you will also not be caught in debt that you will have a devil of a time paying off.
Once you have checked these two, you can go about the process to make sure that your mortgage gets approved.