Transcript: Getting mortgage approval isn't always easy.
[ Theme Music ]
Getting mortgage approval isn't always easy.
Here are some common reasons why people are turned down for loans, and some suggested next steps for each.
Your credit score is too low.
Work on managing your credit.
If you have missed payments, get up-to-date and stay current.
You have too much debt relative to your income. Create a plan and a budget for paying off some debt.
Do not increase your debt.
Your income is too low to support the payments for the loan you requested.
Find a property that is less expensive, or consider a savings plan to increase your down payment amount.
The market value of the property is not sufficient to support the amount you wanted to borrow.
Lower your offering price or find another property.
Your employment history is not long enough.
Find out how long of an employment history is needed, and plan accordingly.
Your lender can work with you to offer alternatives to try to address any issues.