Mortgage application denied?!? Those three little words can invoke panic and anger. Why didn’t I meet the lender’s requirements? This question may pop into your head, but in the wake of tighter lending requirements, many applicants are finding themselves on the wrong side of the fence. To get through the process with ease, understand factors that can get your mortgage application denied.
1. Can’t Back up Income
You may earn enough monthly to pay your mortgage and other bills, but if you can’t document this income, expect to have your mortgage application denied. Mortgage approvals are harder for self-employed people who don’t receive a paycheck from an employer. Keep accurate financial records and document all your income. Be prepared to provide the lender with tax returns from the past two years.