Reasons Your Mortgage Application Could Get Rejected

by HOMESEARCH Realty & Investments, LLC 08/04/2019

A wise man once said to hope for the best, but plan for the worst. When you’re contemplating buying a house, even before beginning the actual application itself, it’s helpful to consider what could possibly lead to its rejection. This is especially important if you’ll be applying for your home loan at a traditional bank. These are particularly finicky with whom they give house loans after the 2008 financial crisis. So, here are a few pitfalls you need to sidestep when filling in your application forms.

Sketchy job history

In order to be sure you’ll be able to pay them their money back, lenders like to get a picture of a steady flow of income in the near future from applicants. You won’t help this cause if your job history reads like a game of musical chairs. Or if there are gaps in your recent past where you had no source of income. Mortgage officers like to see some sort of stability in the income streams of applicants. If they don’t get that impression, your pre-approval might not see the light of day.

In that vein, be sure to document your income streams and assets well in anticipation of the day you will be making that application. This preparation could be the difference between approval and rejection.

Low credit score

A low credit score can be as a result of unpaid debt or debts that you eventually paid up but didn’t update on your FICO records. Either way, if your score is lower than 620, lenders will consider approving your mortgage a risky investment. A low credit score should not, however, spell death to your dreams of owning a home. Get your credit score from one of the many available online sources and see how you can improve it. After a couple of months, you will find yourself eligible for that mortgage.

Outstanding tax liens

An unpaid tax lien or judgment from the past that you may have forgotten about may negatively affect your application. It may not be a problem in the initial stages, but at the point when your lender does a title search for the property, unpaid federal or state tax liens will surface. A clear title policy cannot be issued with outstanding tax liens or judgments. 

Find out your FICO score for free online and talk to your lender to determine the best course of action for you.

About the Author
Author

HOMESEARCH Realty & Investments, LLC

Serving the Englewood, Rotonda West, Port Charlotte, North Port, Venice, Osprey, Nokomis and Sarasota, Florida Real Estate Market

Welcome! Bienvenue! Contact me anytime in English or French. Vous parlez Français? Contactez moi c'est ma langue maternelle!

Our Realtors services that go far beyond just listing and selling. Because each Real Estate transaction is unique, we simplify what could be a complex process into a smooth experience. We accomplish this by using the best professionals in multifaceted expertise, such as financial and public institutions, attorneys, appraisers, closing companies, insurance companies, and more. Whether you are Locally, National or Internationally located, our multilingual and multicultural Agents are focused to convey the specific knowledge needed for a successful investment. How do we make this possible for you? International networking, designated certifications and licenses, use of the latest technologies, experts forum, webinars, and much more.

Come and meet with us at our new Floridian style office, conveniently located in Englewood Florida, only a short distance away from Port Charlotte, Rotonda West, Venice and Sarasota. 

We look forward to meeting you soon,

Genevieve Poulain

     Broker/Owner

QUALIFICATIONS:

  • Geneviève Poulain is member of the National Association of Realtors since 1999
  • Member of local board EABOR Englewood Area Board or Realtor
  • Member of Englewood Chamber of Commerce
  • NAR-CIPS Certified International Property Specialist
  • NAR-TRC Transnational Referral Certified
  • NAR-SFR Short Sales & Foreclosure Certified
  • NAR-AHWDD At Home With Diversity designation
  • REALTOR of the Year 2010
  • Multi-Million Dollars Producer since 2000
  • CAM Community association management licensed in 2001

These skills added to her Associate Degree in computer science and a Bachelor’s Degree in Business Administration with a concentration in Marketing, are without any doubt the key of successful real estate career! 

Genevieve is Homesearch Broker of Record since 2008. In 2010 she become Broker/Owner.

In November 2012, she has decided to relocate her office to offer customers an easy access and a better exposure for walk in buyers. Her strategy is and has always been "a small team of experts to answer local, national and international customers needs"

Looking to buy a new home now? Looking for an experienced Homesearch agent to complete smoothly and successfully this road with you? Call Geneviève now to answer all your real estate questions, and show you the way to a stress free real estate experience.

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