August 27, 2018 / By Trusst Builder Group
According to the Federal Reserve, one out of every eight mortgage applications gets rejected. While that is only 12.5% of all applications, you don’t want yours to become one of those in the reject pile. Follow these guidelines to avoid being rejected.
Make Sure You Aren’t Credit Invisible
Up to 45 million people in the U.S. don’t have credit reports. These individuals are considered invisible to lenders because they have no credit history. And credit invisibility will get your application rejected. Get a couple of credit cards and use them wisely to build a credit history.
Don’t Open a Credit Account Right Before Applying for a Mortgage
When you get a car loan or a credit card, your credit score is going to take a hit. You want the highest scores possible before applying for a mortgage. The smart move is to avoid opening new lines of credit when you are looking to buy a new house.
When you fail to pay a bill, it may get sent to a collections agency. That agency will report the debt to the credit bureau, lowering your scores and dinging your history. Make payment arrangements as soon as possible to show the lender you are taking responsibility.
Don’t Change Jobs When Applying for a Loan
Getting a new job should be a time to celebrate. Except when you are applying for a mortgage that is. Mortgage companies like to see steady employment for at least two years prior to applying for a loan. Changing jobs frequently or right before applying can make the lender nervous and get the loan rejected. Stick with it until your loan is finalized.
Never Lie on Your Mortgage Application
Mortgage lenders check every aspect of your application for accuracy. If you exaggerate or lie on the application, the lender will find out. That will get your application rejected and could get you charged with mortgage fraud. Be honest on your application and avoid this mess altogether.
By following these guidelines, you can avoid having your mortgage application dumped on the reject pile. If you are ready to move into the home of your dreams, and are looking for a home builder near me, call Trusst Builder Group today.