When you’re buying a farm or house for sale in Northern Florida, you may need a mortgage – most people do. But your odds of getting approved depend on a lot of factors, and there are some pretty common reasons that mortgage loans get rejected.
3 Common Reasons Banks Reject Mortgage Loan Applications
These are the three most common reasons people get denied a mortgage loan:
- They open new credit cards
- The don’t have a history of credit
- They have unpaid medical bills
New Credit Cards
Opening a new line of credit can be a signal that you’re running low on money – and it’ll ding your credit score, too. When you apply for a mortgage, don’t apply for anything else until the ink has dried on your new home’s title!
No Credit History
About 45 million Americans are “credit invisible,” which means they don’t have a credit report on file at all. If you don’ have a credit report, lenders have no way of knowing that you’re good at paying your debts.
Unpaid Medical Bills
Unpaid medical bills can put a big dent in your credit score – especially if they’ve gone to a collection agency. Mortgage lenders want to see that you pay your debts on time, every time (or at least almost every time), so they may deny you if you have that type of negative credit history.
Are You Buying a Home for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
