Reasons Why You Might Not Be Pre Approved For A Mortgage

Dated: 12/17/2019

Views: 107

Bad Credit Score 

One of the things a loan officer will look at when starting your pre-approval process is your credit score. You can get an FHA loan with a 580 credit score, but that's generally the lowest most lenders are comfortable going when lending money. Lenders want to make sure that you will pay back the loan. When you have a lower credit score, it means that you may have missed payments, had a bankruptcy, too many credit cards open, or haven't had them open long enough.

 How to Fix it

Changing your credit score is a process, but the first thing you should do is to check your credit report. Not only will this show you what is causing your low credit, but if there's something incorrect on the report, you will be able to work on fixing it. It will also give you some suggestions of what you may want to do to get your credit score up. This will most likely mean reducing some of the debt that you owe and ensuring you pay it back on time.

 Incorrect Credit Report

Everyone has the ability to get one free credit report from the government every year. If you're going to be buying a home, it's a great idea to use your one free credit report to check up on any incorrect information and get it fixed before trying to apply for a loan. However, if you don't look at your credit report, if you are not pre-approved, you should look at your credit report to see if there are any problems. If you simply have a low credit score because of the reasons above, you will have to take the steps necessary to fix them. However, if there's something on your credit report that isn't accurate, you can dispute them.



Blog author image

Ahmed Makkiyah

Since everyone's time is precious nowadays I would appreciate if you take what we do as Realtors very seriously, because we understand and believe in the fact that buying or selling a house can be the....

Latest Blog Posts

MARYLAND Real Estate Market 2020

Current Buyer & Seller Perks in the Housing MarketToday’s housing market is making a truly impressive turnaround, and it’s also setting up some outstanding opportunities

Read More

Common Mistakes That a First-Time Home Seller Needs to Avoid

1. Setting an Unrealistic Initial Asking Price    Although you might have paid a hefty sum for your house a few years ago, what your home was worth then is unlikely to match its current

Read More

Create the Home Office of Your Dreams

Whether you work full-time at home or occasionally need to conduct business in the evenings or on the weekends, a home office a great way to utilize an extra room. A dedicated workspace in your home

Read More

Finding The Right Mattress

You’ve got more options than ever when mattress shopping these days with no shortage of brick-and-mortar and online-only retailers to choose from. Here are the factors you should consider when

Read More