Why New York Mortgage Applications are Denied for First-Time Homebuyers
Posted by Site Admin on
Understanding Your Finances Can Help Get You Approved for a Mortgage in NY
Your New York Mortgage Company has the top five reasons applications are denied for first-time homebuyers. Knowing where you financially stand before applying for a mortgage, can make the process less daunting. Contact your NYC Mortgage Company for more information.
For first-time homebuyers, the process of getting a mortgage can be daunting.
The worst part is the lingering feeling you get when you're waiting to learn whether you've been approved. Even if you pick a good lender and gather all the necessary documents, it still may not be enough.
With this in mind, I asked a handful of highly recommended mortgage brokers to share the five most common reasons mortgage applications get denied. While some of the reasons won't come as a surprise, others are less obvious and may very well save you from making a critical mistake.
1. Poor or no credit history
This is far and away the most common reason mortgages are denied.
"Today's mortgage market is pressured by secondary markets, and regulators who have become overwhelmingly specific on scores," Gus Floropoulos of New York's Quontic Bank told me. "If your credit score is below a specific threshold, you will not obtain the loan."
What affects a credit score? "Inability to demonstrate positive repayment on other debts, late payments, past bankruptcy, and past foreclosure can all affect your score," said James Adair of PDX Home Loan in Portland, Ore.
Click here to view the 5 Reasons Mortgage Applications Get Denied.