Things are bad all over.
In the United Kingdom, mortgage brokers claim mortgage lenders are rejecting eight out of 10 home loan applications, according to an AP report.
That’s a pretty high clip – makes me curious what it is stateside. It also means mortgage application volume doesn’t mean what it used to…
Reasons for denial included applicant having no savings (35%), not qualifying for the loan amount required (32%), fears over job security (29%), and bad credit history (29%).
All the more reason to check your credit report for any blemishes, run your debt-to-income ratio numbers, put assets in the bank, hold a steady job, and clear up any potential roadblocks long before applying for a mortgage.
Once you do so, you can get pre-qualified for a home loan and go into the loan approval process with some confidence.
Check out some common mortgage mistakes you can avoid when applying for a mortgage to avoid any nasty surprises late in the game.
Related: How much house can I afford?