Ways Your Mortgage Could get Rejected
Are you aware that just because you need a mortgage and you apply for one it doesn't mean that your application will get approved? That is true and you should know that you can have control over whether or not your mortgage gets approved. It really is a very simple process that can get complicated by things that you werenâ€™t aware of.
Let's say that you want to buy a big house so that you have plenty of space to move around in. That is well and good but you must be aware that big houses cost more than smaller houses. If you want a bigger house, you will want a bigger mortgage in order to be able to afford it. But what if you are already under a lot of debt? Like the amount of your debt would be more than 20 percent of what you make a month. If that is your situation, you can do any of these three things.
First thing that you can do is pay off your debt a little at a time so that you can see a reduction in the amount. lenders will not approve your mortgage for a bigger house of they see that you are under massive debt which could indicate that you are not able to get a handle of your money and that you are also a risky investment for them. So yes, pay of your debt before you approach lenders for a mortgage.
Another thing that you can try doing is to opt for a smaller house so that you can ask to be loaned a much smaller amount. This is a very practical thing to do since a smaller mortgage also means that you have a smaller amount that you must pay off. Taking out a mortgage means you are going in debt, if you care to know.
Another thing that you can do is to forget about owning your own house. That way, you do not have to get a mortgage or worry about your debt and payments. But seriously, the choice is yours to make.