Will I be accepted for a mortgage? Is one of the most common questions people ask before considering buying a house. If you are wondering if you would be accepted for a mortgage or why mortgages can be declined, carry on reading!
What affects your chance of being accepted for a mortgage application?
There are many factors which contribute to being accepted for a mortgage, these include;
Your financial status – Your financial status affects your mortgage application greatly. Lenders want to know that you will be able to afford the monthly mortgage repayments.
Your buying situation – Your buying/relationship status could affect your chances of being accepted for a mortgage. This could depend on the singular income that you will be using to pay the mortgage. If you were to buy it with a friend or a partner, the lender maybe more reassured. Due to the fact that if one of you was to endure financial problems, the other would be able to pay the bills.
Job Status – The length of time that you have been in a job can affect your chances also. This is because if you have only recently moved jobs, you could still be in a probationary period. Therefore may not be kept on at that job. A long term job provides stability and so this could affect your chances.
Why can mortgage applications be denied?
You need to make sure that you have the best chance of being accepted for a mortgage. However, if you are denied this could be why;
You are in too much debt – If you are in too much debt, you will not be accepted for a mortgage. The lender may see that you can not deal with finances already.
Payday loans – If you have had payday loans at any point, this could mean that you will be denied a mortgage. This is because the lender will be able to see that you have had financial trouble in the past and could increase your chances in the future. Unfortunately, this is still the case even if you had paid off the loans in time.
Poor credit history – Even if you are financially stable now, your credit score could stop you from being accepted for a mortgage. Your credit score takes a while to be built up. So even of you have got yourself out of debt, you need to be continuous with your good spending and saving habits. This can help your credit score go from negative to positive. However, some lenders do take into account some of these factors. So even if you have a poor credit history they may allow you to get a mortgage with bad credit
Please note: MovingSoon is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a specialist mortgage provider.
