Reasons why your mortgage application was turned down

Category: Loans

iStock_000019269343Small

If your mortgage application was turned down, you may not understand or even find out why. It could be one reason or it could be multiple reasons, and this article highlights some of the main reasons that some applicants don’t receive mortgages. If you have yet to apply for a mortgage, but have been thinking about it, this article can help you decide if now is the best time to apply, or if you may be better off waiting.

You don’t have good credit 

If you went through a foreclosure, bankruptcy, or short sale in the last few years, there is a good chance that this was the reason your mortgage application was turned down. Charge-offs and judgments are also almost a surefire way to get denied. Even excessive credit card debt can stop you from obtaining a mortgage. Receiving cash from Peachtree Financial Solutions may help you fix credit blunders, which may help to improve your credit. Before applying for a mortgage, it is also crucial to double-check your credit report, in case there are any errors that need to be corrected first.

You have too much debt

Perhaps you have a good amount of money for a down payment and last time you checked, your credit score was decent, too. But even if you’ve got a good score, you may have a lot of debt, and lenders may still see you as a risk. At Peachtree, we can buy structured settlement annuity payments from you and provide you with cash now.

Your down payment isn’t sufficient 

These days, not having a down payment at all will almost always disqualify you for a mortgage. Additionally, a large down payment will lower your interest rates and potentially eliminate mortgage insurance, which will give you the lowest monthly payments possible. Peachtree Financial Solutions can get you the money you need by purchasing your future structured settlement annuity payments. The money you receive can be used to make a down payment on a home.

You have unstable employment 

If you change jobs frequently, this may be a reason why your mortgage application was denied. Lenders like to see employment stability, because it makes them feel more confident that you will be able to pay back the loan. If you haven’t been at your current job for very long, you may want to wait a couple years before applying for a mortgage—whether again or for the first time.

Your income is too low

If you don’t make enough money to cover your monthly mortgage payments, it will often raise a red flag. One way to get around this is to apply for a smaller loan amount.

 

Are you receiving long-term payments from a structured settlement or annuity, and you need cash now? For more information on receiving cash now and how we can buy structured settlement annuity payments from you, contact Peachtree Financial Solutions today.

 

Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.

Tags: applying for credit, buying a home, credit, home loans, Mortgages

Leave a Reply

Your email address will not be published. Required fields are marked *