If you’re looking to buy a home, you probably already know the basics of getting a mortgage: pay off other debt, hold a steady job, don’t make large, sudden deposits or withdrawals to your accounts, get your credit score in order, etc. But what if you (seemingly) follow the rules, and still get denied? Can that even happen? Well, according to this article by Danielle Blundell at Yahoo Homes, the answer is yes. Check out these surprising reasons why some people were denied, and make sure you don’t repeat their mistakes (no matter how harmless they seem):
-$5 Late Credit Card Payment: it can actually lower your credit score and effect your mortgage application
-Giving Your Sister a Check for $100 on her Birthday: think twice about gifting or lending anyone money – no matter how small the amount. Why? Because if you need that money to be accounted in your debt-to-income (DTI) ratio, this seemingly minor transaction could stall the application process.
-Getting a New Job: Employment stability is a key component in qualifying for a mortgage.