Why Was I Denied a Mortgage Loan?

I know its embarrassing to be denied a mortgage loan. All is not lost, to understand why it was denied. Then you can improve the situation and re-application. First of all, when you are denied a mortgage loan, you should receive a rejection letter. Pay attention to the reason for the refusal. If the letter does not make sense of why you were denied, then request more information and be persistent! Here are some common reasons are denied loans: provide the wrong document, or that the wrong document insufficient funds for closing costs or down payment or insufficient incomes have not worked at your current job long enoughLet explain each of these: to provide documents wrong or missing some document to provide these documents is very important. Provide the documents is like showing them what is in your underwear drawer. Any document request, give to them. Sometimes it feels like "do not have the right to know that, yes they do. Want to give your best friend hundreds of thousands of dollars without knowing if they could pay it back or if they are honest with you? Of course not! So get ready to show them the documents, no matter how personal. Keep the originals, but only give them copies. Insufficient funds for closing costs or down payment, depending on the type of loan your payment application may be down from 10% to 20% of the loan value. If you do not have the required down payment to be saved, it denied the mortgage loan. If you do not have much saved, then look for a FHA approved lender for a loan. They have lower down payment requirements and will have more flexibility with how to get the payment down. You can also examine options for assistance payments. They also believe that you need money saved for closing costs. These can be up to 6% of the loan value for taxes, insurance, title insurance, etc. All these types of costs are necessary to close the loan. If the lender sees you have not saved enough for these costs, you may be denied a mortgage loan. You can not avoid these costs. So if you do not have money saved for these, there are some concessions vendor that can help. But it will be up to the seller to agree with them. Sufficient income, or have not worked at your current job Long Enough with your monthly payment PITI (principle, interest, taxes and insurance) for the house you want to buy can not be more than 28% of total monthly income. For example, if the gross income was $ 2000/month then the house payment would be $ 560 maximum PITI. If it is, then the creditor might be considered too great a risk and deny the loan. If your total debt, including house payment, the accounts of rotation (such as credit cards, department stores, etc.) and your long-term loans (like auto loans, student loans, etc.) are beyond the 42% of its gross income each month, you will also be denied. So if you have this kind of problem, wait and pay your debt and then re-apply for the loan. In addition, you should have two years of work for the same work. If you changed jobs to improve your income that would have been good. Preferably, the creditor would like to see continue in the same line of work. Consider the last two years your work history looked like this: he worked for six months in a chain of fast food, licensed or without a job for four months, and you worked for fourteen months in a store as a cashier for minimum wage.In most cases, you may be denied a mortgage because you have not had the occupation continues in the same line of work. Now use the same scenario for the last twenty-four months: he has worked in a fast food chain for twelve months, while doing so, went to university to become a dental hygienist and finished, shut down jobs at fast food chain and found work as a dentist hygienist.As until there was a gap of more than two months between jobs, this would be seen as the occupation continues and could be approved for the mortgage loan. These are just a few reasons why you may be denied a mortgage loan. Its not the end of the matter! Intervene and resolve any problem. Soon you will be qualified for a loan and have your dream home.