Deciding to buy a home is a huge decision, and for many of us, we save up for years on end to be able to put a deposit on a property we like. Once you have your deposit money, the next step is to apply for a mortgage loan itself- which can be even more of a nerve-inducing experience. Here at We Buy Any House, we have compiled our top reasons why you may have been rejected from a mortgage application.
What Are Some of the Reasons My Mortgage Application Can Get Declined?
Poor Credit History:
If you have poor credit history, then your mortgage application could be declined. Having a bad credit score is essential when your finances are assessed, and the result is negative. If your credit score is low, then it essentially means that you don’t have the greatest grip on your financial situation. Poor financial management can result in a poor credit score, as you’re less likely to be granted money.
You Aren’t Registered to Vote:
Not being registered to vote means that you may not be eligible for a mortgage application. Being on the electoral register means that mortgage lenders can track you and your address.
You Have Applied for Too Many Credit Applications:
When you apply for a mortgage loan, the mortgage lender will check your credit score to see if you are suitable. However, all searches are recorded- so if you have lots of applications over a shorter time, then you are more likely to be rejected as it looks like you have tried to take out an excessive amount of loans.
You Have Too Much Debt:
When your debt begins to rack up, then it can feel as though you’re drowning in a never-ending financial pool. Being unable to pay your owed finances is frankly a huge reason that you could be rejected from your mortgage applications. This is because it demonstrates that you are living beyond your means and therefore can’t afford to take on another huge loan such as paying off a mortgage.
You Don’t Earn Enough:
As unfortunate as this is, sometimes you may be rejected from a mortgage application because you simply don’t earn enough. Nowadays, owning a house is a monumental achievement and a huge milestone in many people’s lives. However, the financial aspect of repaying a house can be a huge burden for many, and if you’re not earning enough in your job- then this could be a reason why you may be rejected from your mortgage application. Luckily, there are a lot of government schemes that can help with this- such as the help to buy schemes, which essentially helps first time buyers get on the property ladder and make financially smart decisions when buying their first home.