There are numerous reasons your mortgage may be declined. Some of them are more obvious than others. The home that you plan to purchase will be collateral for your mortgage loan. If the home you want to buy doesn’t appraise for the amount you hope to borrow, the bank will decline your mortgage application.

Your credit rating could be lower than the lending institution guidelines allow for a mortgage loan. If you have late payments on credit cards, have defaulted on loans in the past or even if you have several credit cards with high balances, you may be denied a mortgage loan. Another possible reason for your mortgage being declined is that you are asking to borrow more than you can afford to repay.

All mortgage brokers use standard guidelines for determining whether or not you are a good credit risk. Each loan type and lending institution has specific criteria and/or requirements. In other words there are rules that must be followed when determining not only whether or not you are likely to make your mortgage payments on time, but also whether or not the institution feels you can reasonably afford to repay your loan.

You must provide all documentation needed for the type of loan you are seeking. Historical proof of income, evidence of other sufficient financial resources a credit score above a certain number and other criteria will vary from loan to loan. If you fail to let us know about retirement funds or other financial assets, for example, we won’t have a full picture of your financial resources. The more we know, the better we are able to represent your best interests.

Underwriting criteria can vary among lenders and since our job as mortgage brokers is to be familiar with a wide range of financial institutions, we are able to find a suitable fit and help you choose the best mortgage for your needs.

If your credit history is causing problems, we will let you know what you have to do to repair your credit rating, and what you will need in order to qualify.