When you’re buying a home for sale in Lake City or a nearby community, you’ll most likely have to get a mortgage – the vast majority of people do. However, there are three surprising reasons your lender might turn you down.
3 Surprising Reasons Lenders Can Turn You Down for a Mortgage
The last thing you want is to get preapproved for a mortgage, find your dream home, make an offer and have your lender decline to give you the cash you need to buy. Check out these common reasons for mortgage denials so you can avoid them:
- Moving money around
- Quitting your job or starting a new job
- Applying for credit
Moving Money Around
Your lender wants to see all kinds of stability when it agrees to lend you money to buy a home – and that includes keeping the money you have right where it is. If you move money between accounts or use large sums to pay off debt after you’ve been preapproved for a mortgage, your lender may change its mind.
Quitting Your Job or Starting a New Job
Stability is key again – lenders want to see that you have longevity at your job and that you’re not starting something new that might not last.
Applying for Credit
When you apply for credit while you’re already applying for really big credit (your mortgage), lenders don’t look to favorably on it – it kind-of looks like you’re not wise with your money, even if you are. Applying for credit dings your credit score, too, which means you might not even qualify for the same rates.
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.
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