{"id":1161,"date":"2017-07-21T09:15:09","date_gmt":"2017-07-21T16:15:09","guid":{"rendered":""},"modified":"2024-04-25T11:44:11","modified_gmt":"2024-04-25T18:44:11","slug":"why-cant-i-get-a-loan","status":"publish","type":"post","link":"https:\/\/financer.com\/loans\/articles\/why-cant-i-get-a-loan\/","title":{"rendered":"Why Can’t I Get a Loan? The Most Common Reasons"},"content":{"rendered":"\n

One of the most common questions we receive at Financer.com is “Why can’t I get a loan”, and today, we’ll dive into the most common reasons why you’re not getting your loan application approved.<\/strong><\/p>\n\n\n\n

Having your loan application rejected can be a serious blow, but understanding the reasons the lender declined you can help you qualify the next time.<\/p>\n\n\n\n

When a lender\u00a0rejects your loan application, they are required to explain why in writing. While this is helpful, the reason the lender gives may be a broad generalization. <\/p>\n\n\n\n

If you can’t get a loan anywhere, some of the reasons lenders will reject you can include:<\/p>\n\n\n\n

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  1. An error\u00a0on your credit report.<\/strong>\u00a0Errors, like unrecognized accounts or incorrectly reported late payments can lead to rejection.<\/li>\n\n\n\n
  2. Poor credit history:<\/strong>\u00a0A poor credit history is a one-way ticket to rejectionville. Banks seek late payments, repossessions, foreclosures, and bankruptcies as key reasons to immediately reject your application.<\/li>\n\n\n\n
  3. Too much debt:<\/strong>\u00a0Lenders look closely at debt-to-income ratios, as these indicate your ability to pay your debts with your salary. Home loans are particularly interested in this ratio. Check out our\u00a0debt management<\/a> for more on beating this issue.<\/li>\n<\/ol>\n\n\n\n

    Why Can\u2019t I Get a Home Loan?<\/h2>\n\n\n\n

    Each prospective homebuyer\u2019s loan file is unique, but there are some common issues that may be to blame for your rejection.<\/p>\n\n\n\n

    The most common hurdle for not getting approved is your credit score<\/a>. <\/p>\n\n\n\n

    This is one of the key\u00a0items lenders look at when deciding to approve a loan, and having a poor credit history, which leads to a bad score, can end in a quick rejection.<\/p>\n\n\n\n

    If your spouse is on the loan, his or her credit will also impact your chances of the bank approving your application. <\/p>\n\n\n\n

    You might have an impressive credit score, but if your spouse’s score is lagging, it would be hard to obtain a loan with him or her on the loan.<\/p>\n\n\n\n

    One thing to keep in mind here is that your spouse’s credit will not<\/em> impact any loan that he or she is not a part of, as the lenders only look at who is applying for the loan, not their family or household members. <\/p>\n\n\n\n

    It’s a common misconception that you marry your spouse and<\/em> their credit history.<\/p>\n\n\n\n

    Other factors that determine your prospects of getting a home loan include:<\/p>\n\n\n\n