For the vast majority of us, making the jump from renter to homeowner entails getting a good mortgage. As such, anyone hoping to purchase their first home should make mortgage loan approval their top priority.

Unfortunately, there is a multitude of reasons for which mortgage loan applications are rejected – many of which are well within your ability to control. So, if loan approval is what you’re after, make a point of avoiding the following behaviors.


Top 4 Ways To Decrease Odds Of Getting A Mortgage

Refusing to Make a Large Down Payment


An aversion to making a large down payment on a home is somewhat understandable. After all, many of us are naturally inclined to spend as little money as possible at any given time. Additionally, given how large a financial commitment homeownership represents, it’s easy to see why some homebuyers would be hesitant to put forth an enormous amount of capital at the very outset.

However, despite all of this, this level of frugality will do your chances of loan approval no favors. For one thing, lenders want to see that applicants are fully committed to homeownership and the various financial responsibilities it entails. As such, offering up the smallest possible down payment is unlikely to instill confidence.

Furthermore, a large down payment can effectively reduce the size of your monthly mortgage payments and help you pay off the loan in a timely manner. So, when considering the size of a down payment, make sure to take these factors into careful consideration.   

Lacking Sufficient Income


While there’s nothing wrong with aspiring to live in your ideal home, it’s important to understand that such a residence may not be something you can comfortably afford. So, if you apply for a mortgage that you lack the means to readily repay, you shouldn’t be surprised to see your application rejected. That being the case, it’s best to stick with mortgages – and properties – that are affordable with your current level of income.

Furthermore, on the off-chance that you’re approved for a mortgage loan that’s beyond your means, the quality of life you enjoy in your residence is likely to be severely diminished. After all, if the vast majority of your monthly income is being put towards loan payments, you’re liable to lack money for a variety of basic necessities – not to mention home maintenance costs and property taxes.

In addition, the higher your monthly payments are, the more likely you are to fall behind – and the more likely you are to fall behind, the more likely you are to face foreclosure. Homebuyers in the Sunshine State who are on the hunt for affordable homes in a picturesque locale should check out houses for sale in Daytona Beach, FL.    

Having a Significant Amount of Credit Card Debt

Credit Card Debt

When reviewing applications, most lenders pay close attention to applicants’ debt-to-income ratios. Needless to say, if the bulk of your monthly income is currently being put toward paying off credit card debt, few lenders are likely to take a chance on you.

So, if you’re dealing with a mountain of debt, you’d do well to pay most – or ideally, all – of it off before you start submitting mortgage applications. Furthermore, after your debt has been significantly reduced – or paid off entirely – you’ll need to give your credit score some time to recover before applying for any loans. While this may entail temporarily putting homeownership on hold, your patience in this matter will ultimately increase your odds of loan approval.

Losing Income

Losing Income

Quitting your job during the loan application process stands to harm your chances of approval. After all, in the absence of regular income, most homeowners would find themselves unable to stay current with mortgage payments. So, unless you have another position lined up – and are willing and able to provide proof of this fact – try to avoid leaving your current job while the application process is underway.

If you’re a first-time homebuyer, mortgage loan approval is likely to be the main obstacle standing between you and homeownership. Unfortunately, a staggering number of buyers fail to recognize the importance of properly preparing for loan applications until it’s too late.

Luckily, minimizing your chances of a rejected loan application is much easier than you may realize – especially if you take the time to review the most common reasons for which applications are rejected.  


Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow her contributions in SmartBusinessDaily and RealWealthBusiness

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