BrandBacker Member Why Your Bank May Turn You Down For A Mortgage (And What You Can Do Ab

Why Your Bank May Turn You Down For A Mortgage (And What You Can Do About It)

Thursday, July 12, 2018

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Renting is all well and good when you’re young, free and single. But when love enters your life and kids follow closely behind, it’s not uncommon to yearn for a place that’s completely and truly yours. When that nesting instinct kicks in you want to be able to decorate your baby’s room so that you have a special and unique space in which your child can grow up. You want to be able to decorate the place and make it your own without having to get written permission from your landlord every time you feel like hanging some wall art. We want homes that we can renovate, personalize and make our own. Unfortunately, however, this is becoming increasingly difficult for millennials and those born just after Generation X (Xennials). Skyrocketing property prices and stagnating wages make home ownership an increasingly troublesome prospect for all but the wealthiest of 20 and 30 somethings. And it has absolutely nothing to do with how much we love avocado on toast.

 

If you’ve found the property of your dreams, applied for a mortgage and had your application rejected this can be especially troubling. But try not to get too downhearted. Knowing why your application was rejected and remedying the issue will make it that much easier to get approval when the next dream home comes along (and it will). Here are some common causes of mortgage rejection and what you can do about them…

 

Poor Credit Rating

Very often we pursue lines of credit and are perplexed when they are rejected. Very often we don’t understand what determines our credit rating and how we can improve it. When you know what is a good credit score to buy a house and how you can achieve it, everything else becomes so much easier. Usually it is not the absence of debt that makes a good credit score. It’s your ability to repay your debts in a timely fashion. If you have multiple debts, a consolidation loan can be extremely helpful. It can not only make repaying your debts more manageable, it can improve your credit score significantly. This is because your consolidation loan repays your old debts and replaces them with a new one. Keep up with your payments and new opportunities will arise for you.

 

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