Having your mortgage application denied can be a devastating setback for potential homeowners. But if you are considering financing a home, there are ways that you can prepare that will set up your home loan application for success. Here are the home financing pitfalls you need to look out for:
1. Poor Credit Rating
Get your credit score from a company like Equifax to see where you stand and if there are problems, contact creditors to see what you can do to start repairing your credit.
2. Insufficient Income
In cases where you are seeking a home loan and the lender deems your income insufficient, you may be able to bring in a co-signer or increase the amount of your down payment to secure the mortgage. However, it is always wise to only borrow an amount that you can truly afford.
3. Low Home Appraisal
There are times when a lender will deny a mortgage application because the home appraises at a much lower value that the amount requested for the mortgage. You may, at this point, be able to renegotiate a price with the seller.
4. Overloaded Debt
A bank may decide that taking on a mortgage will add too much of a burden to your existing debt obligations. If you are able to pay down some debt, do so. Or consider taking a consolidation loan to lower your payments.
The team at MEXLend are mortgage financing experts and as the leading mortgage brokers in Mexico, we are able to find the lender that is ideal for your home financing needs. Contact us about how to have your application for a mortgage in Mexico accepted and be on your way to finding your dream home.
