Reputable financial institutions might provide loan programs that enable a buyer to complete a home purchase. A buyer must successfully navigate certain underwriting guidelines to receive a loan commitment. Buyers who are unable to meet specific lending requirements may experience difficulty securing a home mortgage loan.  

Credit Challenges

Credit challenges can impede your chance of obtaining a home loan approval. You’ll need to demonstrate a prompt payment record to creditors for the most recent two-year period. Late payments made to landlords, credit card companies or auto lenders might disqualify you for a mortgage loan. An unfavorable credit score will reduce your opportunity to qualify for a home loan, too. Public records that reflect recent collection accounts, judgments or bankruptcies could decrease your ability to get a home loan.

Employment Record       

An unstable employment record will increase your difficulty toward obtaining a home loan. Mortgage lenders will verify your employment record for the previous two-year time frame. Experience in your occupation for two years is needed to meet traditional lending requirements. If your employment information reflects two years of experience that’s spread among several employers, mortgage lenders will tally your cumulative occupational experience. Getting a mortgage with less experience may be difficult, and require that you gain more experience in your line of work. 

Debt-to-Income Ratio

A debt-to-income ratio that exceeds allowable underwriting limits will disqualify you for a home loan. Mortgage lenders will use debt-to-income calculations to measure the percentage of your monthly income that’s allocated toward your monthly debts. Lenders will reject loan requests for unaffordable mortgages. Unless enough of your debt is paid off, or you obtain a qualified cosigner, you will experience difficulty securing a home loan.


Obtaining a home loan often becomes an enduring process. Due to the financial commitment, mortgage lenders will need to ensure that a particular home loan makes sense for your situation. If you’re unable to obtain a home loan, you can request information about the reason for your loan denial. Working toward improving items that prevent lenders from approving your request for financing could increase your chance of getting a home loan.



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