Why Home Loans Are Declined

Home loans are declined because the underwriters at the lenders have decided your loan either did not fit into their lending guidelines or you were to risky a borrower. The underwriters act as a wall of protection for the lender so if something does not make sense to them they may either ask for clarification or deny the loan.
Common Reason For Loan Denial
One of the most common reasons mortgages get turned down is from borrowers giving false or inaccurate information. Many times this is done by accident. Even when done by mistake it is hard for underwriters to look past false information as it appears to look like potential fraud.
Wrong income levels are often stated on loan applications. The best way to avoid this is to go by last years income on your W-2. If you have had a raise and are hourly figure 40 hours a week as your base salary. Wrong income is the quickest way to get your loan terminated in underwriting.

A credit score drop is also another common reason for losing your loan. One of the biggest mistakes people can make is to have their credit cards maxed out or balances are higher than 30%, late payments on bills and/or judgments/collections.

Have you applied to a “big bank” for a mortgage only to be turned down because of a
few bad marks on your credit report?