Avoiding Rejection

Few things are more heartbreaking than finding the perfect home for you, but then getting turned down for a mortgage. By knowing some of the common reasons lenders reject otherwise qualified applicants, you can be proactive in avoiding them.

Here are a few simple reasons:

• Information on your application is inaccurate or incomplete. Lenders will want to know about all aspects of your financial status, so make sure you know exactly what information and documentation you'll need to provide, and don't omit - or lie about - anything. also, be sure lenders can quickly get hold of your should they need any further details.
• Problems with your credit report. You may have a fine credit score, but if there are mistakes or omissions on your credit report, it may not look that way to lenders. Get a copy of your credit report and ensure it's error and omission free before you apply for your mortgage loan.
• There may be issues with the property you intend to purchase. Not every property is an acceptable risk for lenders in that they may not be able to recoup their money should they need to sell it. Check with lenders early on to make sure they deem as an acceptable risk any property you're considering.
• Your financial situation may have changed significantly prior to applying for your mortgage. Avoid making major purchases, like a car, changing jobs, or moving your money around right before you apply for your loan, lest you throw your debt-to-income ratio off, create uncertainty about your future earning, or make it difficult for lenders to track you assets.

Buying, or "Just Looking"?

Is your home on the market? If so, it's important you know with whom you're dealing as far as potential buyers are concerned. Some types of buyers are less desirable than others - to learn which, read on.

• Looky-loos, window shoppers, tire kickers - whatever your preferred term, these "buyers" aren't really buyers at all in that they're not actually interested in ever purchasing your home. Really, looky-loos are time wasters, likely only viewing your home to get decorating ideas, because touring homes is their pastime, or out of sheer nosiness.
• Buyers who may have difficulty qualifying, or will be unable to qualify, for the financing needed to purchase your property. The fact is, not every buyer who expresses interest in your home is able to afford it and many buyers will not have a pre-brained mortgage loan. Such buyers might keep hour home tied up for weeks while they try to arrange for financing - financing they may never obtain.
• The lowballer. Offering less than the asking price is a normal and expected part of the negotiating process. But some buyers are so aggressive and unrealistic in their low balling that they'll try to undercut you no matter how far you go in compromising on your asking price or counter offers. Often, buyers who unreasonable lowball aren't serious about buying.

A real estate sales representative will determine the quality of your potential buyers - a valuable service to your. A qualified real estate sales representative will pre-screen prospective buyers on your behalf, weeding out those who aren't serious about buying, or who might not be financially able to close the deal, and instead focusing on the desirable buyers - effectively saving you time, energy and even money.

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