I believe many people will encounter such a situation in the process of buying a house, that is, the mortgage loan cannot be approved. So here’s the question, do you know why the mortgage loan won’t be approved? What should I do if my mortgage loan cannot be approved? Let me reveal the answers to you one by one below.

What are the circumstances under which a mortgage loan cannot be approved?

1. There is a record of overdue repayment

In the process of applying for a loan, your personal credit report is a very important of reference materials. If the report shows that the borrower has recent overdue repayment records, it is very likely that the mortgage loan will not be approved. But if your overdue debts are few and the amount is small, it is still possible to get a loan. It’s just that the loan-to-value ratio will be relatively lower, while the loan interest rate will be higher.

2. Incomplete loan information

In addition, if you want to successfully obtain a bank loan, a very important factor is that the information submitted by the borrower must be complete. If the borrower submits If the information is incomplete, you will also face the situation that the mortgage loan cannot be approved.

3. The loan information is untrue

Because some home buyers are worried that their low income will lead to a small loan limit, they think of tampering with the information. If the bank finds out, they will definitely face problems. The loan may be rejected and you may be included in the "blacklist" as a result.

4. Weak repayment ability

What everyone needs to know is that whether they can successfully obtain a loan has a certain relationship with the borrower's repayment ability. If the borrower's repayment ability is limited, the bank will bear a certain risk, so the chance of home loan rejection will also increase.

5. Too much debt

There is one last reason, which is too much debt. Therefore, it is best for the borrower's monthly payment not to exceed 50% of the family's monthly income. If it exceeds, the loan is likely to be rejected. Even if the loan can be obtained, the loan amount will be very low.

Editor’s summary: After reading the above introduction, I believe everyone has a better understanding of the circumstances under which a mortgage loan cannot be approved. If you want to know more relevant information, please continue to pay attention to our website, and we will present you with more exciting content in the future.