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Can I Be Denied A Mortgage After Pre-Approval?
November 22, 2023 | Posted by: Angela Robinson
Pre-approved for a mortgage? Think you're all set? Not so fast! Here's a quick guide to avoid mortgage denial after pre-approval.
Reasons a Mortgage Can Be Denied After Pre-Approval:
1️⃣ Change of Employment: Job changes during probation can impact approval.
2️⃣ Poor Credit Report: New debts or missed payments can lower your credit score.
3️⃣ Additional Debts: Avoid large debts until your mortgage deal is sealed.
4️⃣ Changes in Loan Requirements: Lender guidelines may change after pre-approval.
5️⃣ Appraisal Issues: A satisfactory bank appraisal is crucial.
What To Do If Denied: Don't give up! Improve your chances with these tips:
1️⃣ Improve Credit Score: Convince lenders by showing you can make payments on time.
2️⃣ Pay Down Debt: Lower your debt-to-income ratio.
3️⃣ Add Income: Increase your income to improve the ratio.
4️⃣ Increase Down Payment: Lower risk to the lender by saving more.
5️⃣ Get a Co-Signer: Someone with good credit who agrees to pay if you can't.
How to Ensure Approval:
1️⃣ Avoid Additional Debts: Hold off on new cars or credit lines.
2️⃣ Prove Large Deposits: Don't deposit without source proof; avoid large withdrawals.
3️⃣ Continue Financial Responsibility: Save money, make timely loan payments.
It's tough to be pre-approved and still face denial. Consult us today to take steps to get your dream home.
Full article: https://blog.remax.ca/can-i-be-denied-a-mortgage-after-pre-approval/
