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Tips For Getting A Mortgage Application Approved

by Jim ONeil on June 5, 2011

in Mortgages

Unless you plan to live in a dog house, you will need more than payday loans to finance your new home. Banks are more stringent when it comes to lending and they will continue to be throughout 2011. Some estimates claim that nearly one in four mortgage applications will be rejected in certain places.

The main reason most applicants are rejected for mortgages is because they are not prepared. Lenders avoid prospective borrowers they consider high risk. They also tend to rate certain kinds of properties as unsuitable due to condition or location.

For example, an apartment in a complex featuring similar units may be difficult for a lender to sell if mortgage default occurs.

Lenders will only tighten their lending criteria if interest rates increase later this year. Applicants for mortgage loans must appear reliable and a safe bet. The best way to do this is to be organized and prepared with any documents that may be requested.

Getting the credit score into shape is also recommended, as even an overdue utility bill may be scrutinized. The credit file should be checked before applying for a mortgage and the individual should be prepared to explain blemishes.

Without savings of at least five percent and a down payment of ten percent, it will be nearly impossible to get a loan these days. Lenders look for a three to six-month period of savings without reliance on inheritance or bonuses. Some lenders consider rental payments as proof of savings history.

Steady employment is also required to qualify for a mortgage. Lenders want to see at least two years with the same employer. Prospective applicants should also pay down debt before applying. When shopping for homes, they should look at those within an affordable price range.

This prevents them from requesting more money than they can afford to repay.

Worldly25

Yep. those unpaid fees are on your credit report. A bad debt is a bad debt. Suggest you get that mess straightened out.
also sounds like someone is using your Social Security number

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