Mistakes That Can Get Your Mortgage Application Rejected

Buying a home is a really exciting process, but a rejected mortgage application can crush all your hopes and dreams of having a house of your own. In order to secure a mortgage, it is imperative that the first step of the process remains error free. So, here are a few mistakes that can derail your mortgage application:

 1. Lying about your financial condition: Your credit history gets thoroughly scrutinized before a lender approves you for a mortgage loan. Therefore, withholding information or lying about your financial condition is a big NO. Even if you have a default on your credit report, talk to your lender about it and explain him the circumstances. In most of the cases, lenders will approve your loan if you tell them upfront about a problem.

  2. Not disclosing all your expenses: Before you apply for a loan, make sure that you disclose all your expenses to the lender. Failing to mention about that extra credit card or children’s school tuition fee might lead to the rejection of your loan on the grounds of non-disclosure.

 3. Inconsistent Employment: Lenders prefer working with those borrowers who have been working with the same company for over a year or with the ones who have been in the same line of work for a minimum of two years. If you are planning to change careers and buy a property at the same time, consider putting one of those two things off for the time being. 

 4. Not accounting for closing costs: Apart from the down payment, there are various other upfront costs involved while purchasing a home. These costs include, but are not limited to, mortgage insurance, stamp duty, application fees, origination fees, solicitor fees and inspection fees. Prepare for all these costs beforehand as you won’t want to find out on the day of closing that you’re $20,000 short.

Once you get all the paperwork in order, fill up All Western Mortgage’s online mortgage application here. And if you have any questions regarding the process or are in need of guidance, our expert mortgage professionals are always there to help you. 

Feel free to give us a call at 702-850-2790 any time you want and we will help you with all your problems.