Don’t Let Unusual Circumstances Force You Into Being Refused For a Mortgage
Have you ever been refused for a mortgage? If you have, it’s time that you think about how you can improve your chances to get an approval the next time you apply. Just Credit Solutions, USA can provide you with effective solutions so that you can be certain that your application for a mortgage will be approved.
Top Reasons for Being Refused a Mortgage
If you have experienced being refused a mortgage, you should know that you are not alone. According to the Mortgage Bankers Associations, lenders reject approximately 1 in every 2 applications that they receive to refinance a mortgage. Here are a few of the top reasons why an application for a mortgage loan may be turned down:
Improper Documentation of One’s Income
Mortgage approvals are more difficult for people who don’t receive a regular paycheck from an employer, such as those who are self-employed. There are a lot of people in this situation who earn enough money to qualify for a mortgage loan. Yet some of them still get their applications refused because of incomplete documentation of their income.
To have higher chances of getting a mortgage application approved, you must accurately keep financial records and properly document all your income. Be prepared to provide the lender with income tax returns from the past 2 years.
Gaps in Employment and Moving Too Quickly From One Job to Another
Career instability is a red flag on mortgage loan applications, and lenders often perceive job-hopping as a sign of an unstable career. Mortgage companies generally assume those with multiple jobs in a short period of time as people who often get fired or people who easily get bored with their work. Large gaps in employment are also a bad sign because these may have happened involuntary due to layoffs or termination for various reasons.
So, a good solution to an unstable work history might be to stay put at an employer for a lengthy period, if for no other reason than to help you qualify for that mortgage.
Earning Commission Income
Income earned though commission, no matter how big, can negatively affect your application for mortgage loan because it is an inconsistent source of money. Commission income is difficult to document and thus makes the lender hesitant to approve your loan.
Commission is a good source of extra money, but it is imperative that you possess a stable source of income when applying for a mortgage. You may want to seek employment with a company that has some sort of base salary. This will make a big difference in helping you qualify for that home.
Existence of Debts
Your chance of getting a mortgage approved is lower if you owe any kind of debt to anyone (e.g. money, obligations, and liabilities). Paying off your debt should be a top financial priority if you’re seeking a loan like a mortgage. Seek the help of a financial advisor for tips on the fastest ways to reduce your debt to income ratio.
Keeping Delinquencies, Repossessions and Unpaid Debt
Other factors that may negatively affect your application for a mortgage include delinquencies, repossessions, and unpaid debt. Make sure that you settle all these for a higher chance of acquiring a loan.
How we can Help You at Just Credit Solutions, USA
We at Just Credit Solutions, USA can help you improve your credit. Follow these simple steps:
Determine Why You Have Been Refused the Mortgage
It is important to first identify the reason why your application for a mortgage was declined. The law requires mortgage companies to provide you with the reasons why you were refused the loan. We need you to submit to us your credit report from the lender or we can get it for you.
Get Your Credit Report Up to Par
A mortgage underwriter is a credit analyst ultimately responsible for approving or refusing your credit request. Their job is to assess the total risk by evaluating all the factors that contribute to your credit worthiness.
We at Just Credit Solutions, USA can help you by reviewing and balancing your credit report so that a mortgage underwriter can approve your loan. Our team of experts will create letters of dispute according to the negative records on your files and send them to your creditor(s) and to the 3 Credit Bureaus (Experian, TransUnion, and Equifax).
There are many cases wherein a credit has radically improved after just one round of dispute letters, which generally takes around 30 days. Some cases could take up to 6 months or longer.
Let Us Help You Increase Your Chances of Getting a Mortgage Loan Approved!
Just Credit Solutions, USA is one of the most trusted credit repair services based in West Covina, California. We specialize in financial management, reputation management, and credit repair. Our team of experts can help you improve your credit so that you can have a better chance of getting your mortgage loan application accepted. Contact us today at 1 (866) 598-6340 ext. 734!