How To Avoid Getting Turned Down For A Mortgage

Mar 18, 2021 | Things To Know

It’s not out of place to see people get turned down for a mortgage. In fact, getting turned for a mortgage won’t stop the world from spinning. Frequently, the lender has a credible reason for declining an application; it may be due to some miscommunication between the borrower and the…

Written By HSE Buyers

It’s not out of place to see people get turned down for a mortgage. In fact, getting turned for a mortgage won’t stop the world from spinning. Frequently, the lender has a credible reason for declining an application; it may be due to some miscommunication between the borrower and the lender.

In any case, there are ways you can position yourself to meet a lender’s expectation . Whether you’ve been turned down for a mortgage or you’re hoping to avoid such fate, this article will discuss Top 6 ways you can avoid getting turned down for a mortgage if you are trying to buy or sell your house in Phoenix.

1. Keep your income stable

A lender wants to be assured that you’re capable of meeting your financial obligations. If your current income isn’t sufficient to handle the cost of your dream house in Phoenix, a second job or a side hustle is in order.

All in all, you’re to do all you can legitimately do to keep your income steady and maybe boost it upwards before applying for a mortgage. A borrower with a great credit history is a lender’s prayer.

2. Reduce your debt

Having little to no debt in your name helps your application immensely. Resist the urge to make a major purchase that will increase your debt before applying for a mortgage.

Pay off your debts. When your debt to income ratio reduces, your chances of securing a mortgage are pretty decent. The converse is true too.

3. Don’t Lie to your lender

Lying on a mortgage application form is not only unethical; it’s self-defeating and criminal. Full disclosure is wise and it doesn’t cost a thing. Additionally, relating factual information to your potential lender also means you won’t lose sleep over the possibility of your potential lender finding out the truth. Honesty remains the best policy.

4. No abrupt change in employment

If you’re about to apply for a mortgage, refrain from changing jobs. Even if it’s a lucrative employment offer, try to stay in your current job until after you’ve secured your mortgage.

A change in employment at the eve of a mortgage application or during application is more paperwork. No one likes ‘more paperwork’ and this affects the entire process.

5. Check out for errors on your mortgage application forms

You’re in a position to watch out for errors on your own end of the process. In your mortgage, be sure the form is filed out properly, look for spelling errors and correct them.

6. Consult a professional

Consider hiring a mortgage broker. If you want to avoid your application being denied, the services of a broker should come in handy. A broker has access to a huge range of lenders and the requisite ‘feel’ for their mode of operation/expectations.

A broker will check your income and employment records for nuggets to be used during your application. They help you get and file all the relevant documents you’ll need to apply for and check your credit history.

These top 6 ways will protect you from an application denial.

MORE Blogs

Is it Worth It To Live In Avondale AZ?

Is it Worth It To Live In Avondale AZ?

If you are wondering if Avondale AZ is worth living, then the answer to your question is a straight-up YES. If you want to get the facts of my assertion, relax and read on to find out why many  people who live in Avondale AZ considers it an excellent place to stay....

read more
How To Remodel Your Attic in Your House In Arizona

How To Remodel Your Attic in Your House In Arizona

The attic is one area in the house most people turn into a junkyard of sorts. They throw all manner of old household items in there to create more space in the living area. In certain considerations, however, this is not always a good practice. If you want to remodel...

read more