Mortgage Advice- Why Your Mortgage Can Be Declined After Pre-approval
Getting your mortgage pre-approved does not guarantee that it cannot be declined later. No matter how inconvenient it can be, there have been quite a few instances where due to not meeting of certain pre-requisites, a mortgage request was finally declined, although it might have had been pre-approved. It can be a major setback for people after all the hard work that went into applying for a mortgage. However, this rejection must be taken as a moment of truth which offers you valuable insight into your financial life that needs a relook. Lenders will let you know about the cause through a formal letter. Here are some of the reasons mentioned by leading mortgage advisor in Edinburghabout why your application might get rejected. If you take care of these, you would not have to go through the hassle and embarrassment of being rejected for a mortgage.
Poor credit score
Money lenders can easily get to know whether you are a risky investment,by checking your existing credit report. Unless there are significant derogatory remarks regarding delayed payments and foreclosures, you should be able to get the mortgage. An EQUIFAX score of less than 300 and EXPERIAN score below 560 is low for approval.
Insufficient income or asset documentation
A lender can judge your repayment credibility by looking at your income to debt ratio. You may feel that you earn enough to pay the monthly bills, but unless you document the income, there are chances of rejection. Proper tax return files and documentation of your assets and investment is essential to get sanctioned.
New to the UK?
Not all, but there are many lenders who will reject your mortgage application just because you have newly arrived in the UK. You need to show your work visa and employment contract to be able to apply. There are lenders who do not extend such mortgages to people who are not on the electoral list of their area.
If you are looking for the best mortgage advice in Edinburgh, then Lothian Mortgage Services is your perfect solution. With our services, you can get the best deals in mortgages along with the support from our expert advisors. Reach out to us; we have got your back when it comes to your mortgage.
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