Why home loan applications are rejected| Altius Mortgage

Are you one of those who effortlessly worked to submit your home loan application but still got rejected? You’re not alone. Approximately 1 in 4 home loan applications get rejected, and there are a number of reasons why this might happen.

Here are some of the most common reasons for a home loan application getting rejected:

Low credit score: A low credit score is one of the main reasons home loans get rejected. If your credit score is below 620, you are considered a high-risk borrower and will likely have a hard time getting approved.
High debt-to-income ratio: Your debt-to-income ratio is also taken into consideration when lenders are deciding whether or not to approve your home loan application. If you have a lot of debt relative to your income, it may look like you’re not in a good financial position to take on more debt.
Inaccurate information: Be sure to provide accurate information on your home loan application. If there are any discrepancies between what you report and what the lender finds, your application may be rejected.
Too much home equity: If you already own a home and have a lot of equity in it, the lender may see you as less risky and be less likely to approve your home loan application.
Lack of documentation: In order to process your home loan application, the lender will need certain documentation from you, such as proof of income and employment. If you don’t provide this documentation, your application will likely be rejected.

What to do if my home loan in Saratoga Springs got rejected?

If your home loan application gets rejected, don’t give up. There are a few things you can do to increase your chances of getting approved:

Work on improving your credit score: A higher credit score will make you a more desirable borrower and may increase your chances of getting approved.
Pay down your debt: A lower debt-to-income ratio will make you look more financially stable to the lender.
Provide accurate information: Make sure you’re providing the lender with all the correct information. Any discrepancies could lead to your application being rejected.
Increase your down payment: A higher down payment will show the lender that you’re serious about purchasing a home and are willing to invest more money into the purchase.
Apply with a different lender: If you’ve been rejected by one lender, try applying with a different lender. Each lender has their own set of criteria for approving home loan applications, so there’s a chance you may be approved by a different lender.
Check your credit score: Make sure your credit score is in good shape and up to par with what the lender is looking for.

If you’re unable to get approved for a home loan, there are still other ways to get into a home. You can try finding a home in a lower-priced area, or you could try renting and saving up for a down payment. Whichever route you decide to take, don’t give up on your dream of homeownership. There are plenty of ways to make it happen.