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We have a great contributed post here on how to avoid getting rejected for a mortgage. Read up and let us know your experience!
The Washington Post reported that in 2016, one in every eight mortgage applications was rejected. Getting turned down for a mortgage can be hugely disappointing, but it doesn't mean you can never get one.
If you want to avoid having your application rejected, there are few things you can do.
Failing the debt-to-income ratio test is the number one reason people have their mortgage application rejected. It's easy to overestimate what you can afford, especially as you and your lender might have very different ideas. Using a mortgage payment calculator can help you out.
Credit history problems can also be a big barrier to mortgage approval. If you don't look like a trustworthy person to lend to, mortgage lenders aren't going to like you. You should spend some time tidying up your credit history and improving your score.
Appraisal issues can also lead to mortgage rejections. These aren't always within your control, but one thing you can avoid is getting into bidding wars. You don't want to push up the price beyond market value, or the lender will be more likely to reject the mortgage.
Don't forget that your choice of lender and the type of mortgage you want to apply for matter. You need to approach them differently. If you want to apply for an FHA mortgage, keep in mind that rejections are more likely, so meeting the requirements is extremely important.
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