Tired of being denied on your mortgage? Feels like nobody trusts your financial capability in paying your monthly mortgage? Getting a mortgage approval is very difficult nowadays. It takes a couple of weeks or months before you get approval, or most of the time, only to be denied. The long wait is over! Here are some tips to avoid heartbreak from being denied on your mortgage.
Don’t quit your job during application process — BIG NO! Too many people are being rejected because they moved to another job. If you move to another job while the application is being processed, the lender will check if you are still connected with your previous company. If they found out you’re not, then most likely, they will not approve it. Lender wants to make sure that you have a stable job to pay your mortgage. If you are thinking about quitting, you can do that after you have been approved.
If you have a credit card, make sure that you are not a delinquent payer. Yes dear, you can never be a delinquent payer because the lender can do a background check if you are paying on time or not. Because if you’re not, the lender will not trust your capability of paying your monthly mortgage as well. The lender is at risk as it will be a loss on their end if they will approve you. So, you need to make sure that you are paying on time to gain their trust.
Being a co-maker on another loan — avoid this! This is very popular nowadays. If the borrower is unable to pay the mortgage, then the co-maker is going to be responsible for paying the borrower’s monthly dues. You put yourself and your credit at risk if you are applying for a mortgage. Avoid being a co-maker on another loan while you are waiting for your mortgage to be approved.
Large deposit or withdrawal is questionable on the lender’s point of view. Some lenders might think that if you deposit a large amount of money, especially during your application, it could be from another loan or you just borrowed it from someone so that you’ll be approved. If you withdraw a big amount of money, lender might think that you are running out of money from the bank which means that you are not capable of paying your mortgage.
Large purchase is also a big no as well. The lender will doubt your financial capability if you are paying for another property or a luxurious car. What will happen if they approved your application? You, as a borrower, do you have the capability to pay both at the same time? What if your salary is just enough for your car’s monthly dues? How can you pay for your mortgage? You might end up using your savings just to pay your dues, and in the end, you’ll be in debt which is what the lender doesn’t want to happen.
These tips can surely help you avoid the stress of being rejected. So, keep in mind these factors to be successful in your application.