Mortgage plays an important role in getting your dream home. If somehow you cannot get approved you will have to face huge disappointment. But rather than dwelling on this disappointment it is better to find out why you were declined for the mortgage. If you are declined once it does not mean that you’ll be declined again. Therefore keep in mind these following points that can become the reason of rejection.

Credit History

You credit history plays an important in approval of your mortgage. Today lenders not only examine your credit history but they also view the remarks on your credit report some lenders also pass your report to credit agencies to get a detailed view of your previous record. Therefore it is important to maintain a good credit score and payment record.

Low Down Payment

The amount you pay as down payment plays an important role in the eye of your lender, because your down payment is like investment for your lender. Therefore a huge amount is always better when it comes to down payment. Usually borrowers have to pay a down payment equals to 5-25% of home equity.

Employment History

A consistent and stable job plays an important role when it comes to mortgage approval. Some lenders even require consistent two years of job requirement so that they can be sure that you’ll be able to pay your interest amount and thus mortgage.

Property Issues

This is also a critical point that should be kept in mind. Sometimes your property’s worth is not enough to be held as security for your mortgage plan and therefore mortgage is denied. As a borrower, you have the right to ask for an appraisal rebuttal, but rarely do this result in a higher appraised value for the property in question. A good way to solve this is to shop lenders.

Anyone of the above mentioned issues could be the reason of rejection of your mortgage. But don’t panic, with little effort and management you can put yourself in the position to get a good mortgage deal.

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