These Are The Factors That May Be Hindering You From Getting Approved For a Mortgage On Your Dream Home
Purchasing a home can be a stressful thing to go through for first-time buyers. Perhaps a bulk of this stress comes from the process of applying for a mortgage. Not surprising since one’s application can easily be affected by a number of factors from unanticipated problems to innocent mistakes. Here are some seemingly random as well as common reasons why a borrower’s application might be put on hold.
Post-Marriage Name Change
People who have just gotten married but haven’t gotten around to legally changing their name yet might get their mortgage application rejected. It’s worth noting though that simply changing one’s name won’t affect their application.
Surprisingly, simply having a specific plant growing on the property of one’s dream home may impact their application negatively. One notorious mortgage killer is the Japanese knotweed, a plant known for its aggressive growth. Worse, it can also cause damage to drainage works, brick walls, and even foundations. There’s also the risk of it just growing back despite the situation being already treated. In the end, it makes it more difficult for homeowners to build extensions on their property.
People who work for themselves may face certain roadblocks that others won’t have to worry about when applying for a mortgage. For example, lenders typically ask applicants for at least two to three years of accounts. They ask this information as they’ll use the applicant’s average earnings for their calculations. So, the more accounts an individual can show, the better. This wasn’t the case about a decade ago before the 2007-2008 financial crisis hit. At the time, mortgage lenders only asked applicants what they earned.
Low Credit Scores
Likewise, poor credit scores and bad credit history might also affect one’s mortgage application. These typically happen when a person makes late payments, chooses the wrong credit card for them or only pays off their monthly minimum on said credit cards. The same can be said for individuals who have declared bankruptcy before. Remember that better credit scores typically get borrowers lower interest rates, which can save people money in the long run.
No Credit History
Meanwhile, applicants with no credit history may face some challenges in their application as well. This is because lenders won’t have anything to use to know an individual’s paying patterns given that the latter hasn’t borrowed anything before yet. At the end of the day, mortgage providers would want to feel somewhat confident that a potential borrower is actually capable of repaying the money that they will be lent.
More inFinancial Advisor
Obama, Julia Roberts, Madonna and More Celebrities Who Have Partied on David Geffen’s $590 Million Yacht
Billionaires love showing off their wealth whether it’s through their massive private jets, a fleet of expensive cars or mega yachts....April 9, 2020
Kim Kardashian Sued for $300-Million Over Kimoji App, But the Case Could Go in Her Favor
Kim Kardashian has always found herself at the center of controversies. From her hairstyles to outfits, she manages to create headlines...April 9, 2020
These Five Things Can Help You Boost Your Credit Score—And You’re Probably Already Doing Them
Maintaining a high credit score comes with a lot of financial perks. For one, it can save people plenty of money...April 8, 2020
The Ritz-Carlton Is Woking on a Yacht Cruise Ship Designed For Luxury Travelers–This Is How It Turned Out
Known for its luxury hotels and resorts found across the globe, the Ritz-Carlton Hotel Company is now planning to expand its...April 8, 2020
Drag Superstar RuPaul Charles Just Bought a Beverly Hills Mansion That Totally Matches His Over-The-Top Public Persona
RuPaul Charles better known by the mononym ‘RuPaul’ is probably the most famous drag queens to ever successfully cross over into...April 8, 2020
This is The Unbelievable Story Behind Former WeWork CEO Adam Neumann’s Plummeting Net Worth
Just a few months ago, Adam Neumann was on top of the world. Not only was he a billionaire with an...April 7, 2020
This Is How Young Working People Can Start Preparing For Retirement While Still Enjoying Their 20s
Saving for retirement and enjoying the fruits of one’s labor are not mutually exclusive concepts. Members of the workforce, young ones...April 7, 2020
Tom Cruise Was Offered Roles in These Blockbuster Films But He Turned Them Down!
Tom Cruise is undoubtedly one of the most renowned faces and the greatest talents in the industry – you can tell that by the...April 7, 2020
These Five Major Cities Are Joining The Car-Free Movement & Banning Cars On Their Streets Soon
There’s no doubt that cars are a very useful invention. However, the rapidly growing number of vehicles on the world’s streets have...April 7, 2020