If you are thinking of buying a house soon, there are 2 options that you can use. You can consider buying the house in cash or getting a home loan. Getting a home loan is the best option for most people.
Applying for a home loan is not that easy as most people think. You must think which is the best mortgage lender in the market and you must think how you will submit all your financial documents to them.
Well, there are number of reasons why you can be denied a home loan. What are some of the reasons why you may be denied a home loan?
Most people with low credit score they dont qualify for home loans. Looking for a credit score before you apply for the loan is important. Different mortgage lenders have different credit scores. Did you know you need a credit of over 760 to qualify for a home loan? Try and solve any debt that you have before you apply for the home loan, so that your credit score can rise.
Do you have too much debt? A mortgage lender will look at your credit score and financial records to determine, if you qualify for the loan.
Most people end up been denied a home loan for not having cash for the down payment. Gone are the days when you were not required by the mortgage lender to make any down payment for the house. Before you apply for the home loan, ensure there is some money that you have saved up.
The way your employment records look determine, if you qualify for the home loan or not. If you keep moving from one job to another within a short period, most mortgage lenders will not feel confident giving you the home loan. It is important you work on your employment records and ensure you have been in the same work place for at least a year before you apply for the loan.
In addition, if you have declared bankrupt in the past, it reduces your chance of getting a home loan. For 7 to 10 years you have to deal with the bankruptcy report been on your credit report. If you have a bankruptcy record on your credit report, instead of applying for the home loan alone, consider involving a mortgage broker.
Have you faced foreclosure before? Well, your dream for getting a home loan does not have to die because you have faced foreclosure before, look for a mortgage broker to help you out.
To avoid getting denied a home loan because it is too large, before you start shopping for home loans, consider getting preapproved first.