The Real Reason Why First-Time Homebuyers Are Facing Mortgage Rejection
For first-time homebuyers, securing a mortgage is the final hurdle to achieving the dream of homeownership . Unfortunately, many face unexpected challenges during the mortgage approval process, leading to rejection. Understanding the reasons behind mortgage denials is crucial for preparing buyers to overcome obstacles and improve their chances of success. This article delves into the real reasons first-time homebuyers face mortgage rejection and offers insights on navigating the process. Poor Credit History A poor credit history is one of the most common reasons for mortgage rejection. Lenders rely heavily on credit scores to determine a borrower's risk level. A low credit score or a history of late payments, collections, or bankruptcy can signal to lenders that a borrower may be unreliable when repaying a loan. First-time homebuyers may need to know how much their credit score impacts mortgage approval. A score below 620 is often considered risky, while scores above 700 generally ...