There are many reasons that a mortgage application may be denied by the lender. In general the lender is concerned about how much money the borrower can afford to borrow, their credit rating and their ability to repay the loan. A lender that undercuts mortgage application terms to their borrowers will find that the end result will be that borrowers either pay too much interest or have to pay their loan off late. The lender may also choose to decline a mortgage application if they feel that the borrower is not likely to be able to repay the mortgage. If you would like to learn more about this, please check out read here
Mortgage applications are sometimes declined due to the borrower’s financial situation. This could be because the borrower has a poor credit history or there is insufficient evidence to show that the applicant will be able to repay the mortgage loan. In such cases the lender will request further proof that the applicant’s circumstances are suitable for paying off the loan. In order to satisfy the lender a number of things could be submitted to them, including pay stubs, salary slips or bank statements. This could all influence the decision to reject a mortgage application.
It is possible that the Mortgage Applications received last week were rejected due to the Mortgage Applications were received last week. Mortgage Applications are normally seen as a positive sign by the lender when they are received in the last week of the year. As the market has cooled down over the last week and mortgage applications are likely to increase as the New Year approached so it may become necessary for some lenders to reconsider some of their lending criteria. If you want to get your Mortgage Application approved it is imperative that you submit all relevant paperwork on time. Remember that even if your paperwork is rejected there are other lenders out there who will be more than willing to give you your money. You only need to apply once and the chances of getting approved increase dramatically.