Real Estate Community Forum

Everyone who dreams of owning a house will someday have to apply for a mortgage, unless your lucky enough to have enough money to pay for the house upfront. For those of us who have to apply for a mortgage, there must be certain things that automatically cause a red flag to appear, which decreases your chances of being approved for a mortgage. Does anyone know what kills a mortgage application?

In my opinion, there are several things that will kill a mortgage application or delay your chances of being approved. Off the top of my head, here are a few:

* Unpaid tax liens
* Poor credit, especially if you file bankruptcy
* High debt to income ratio
* Job instability
* insufficient down payment

Now that the housing market has changed, it will be even more difficult to be approved for a mortgage. I strongly suggest making sure that you check your credit score and make sure your paying down all you debts before even thinking of buying a home in today's market.

My friend applied for a mortgage and she was rejected because she did not maintain her current job status when applying for the loan. It appears the mortgage companies have become very strict on who they approve for a loan because of the problems with the housing crises.

In addition if you have been fired from a job or decided to quit, it will also hurt your chances of getting a mortgage. In fact, some mortgage companies will actually call your previous place of employment to verify your reason for leaving.