What do I do if my mortgage has been denied after appraisal?

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Applying for a mortgage is a complicated process and the fear of being denied the loan after having the appraisal done is very present. This means losing the money from the appraisal and the deposit contract, but all is not lost, there are ways to get it. In today's article we will talk about what to do if the mortgage has been denied after appraisal.


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Why was my mortgage denied?
There are many reasons why they can deny you the mortgage, it will all depend on Chinese Overseas America Number Data whether they do it before or after the appraisal. The first thing the bank will do is carry out a feasibility study, with this they will see if you are suitable for a mortgage loan and what type of financing.

In this study you may be denied the mortgage for the following reasons:

Lack of income and savings
To be able to take out a mortgage, the payment cannot exceed 35% of the monthly income of the family unit. This is called debt capacity, and it is important to not put your economic stability at risk.

If you have a very low income, it means that your monthly payment has to be very small and the possibilities are reduced, especially if we talk about large cities where prices are very high. If your salary is low, it is best to apply for a shared mortgage , this way your debt capacity would be higher and you could obtain better financing.

Apart from income, it is also important to take savings into account, it is necessary to have a minimum of 30% of the price of the property saved to be able to take out a mortgage. 10% is intended to cover the costs of the sale and the remaining 20% ​​to make the initial contribution. Keep in mind that banks usually give a maximum of 80% of the appraisal.




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Labor and economic instability
Banks value stability when they evaluate the client's profile: stable work with an indefinite contract, having a minimum of one year of service and being in a stable sector. Profiles such as civil servants or young people with job prospects are highly sought after by banks, since they have stable contracts and good salaries.

In addition, they will also analyze your credit history, so if you have other loans your debt capacity will be reduced and if you have outstanding debts, the bank will automatically reject your application, as it is a high-risk profile.

Customer age
Age can also be a reason for being denied a loan. Banks usually set the limit for paying the mortgage at 75 years , there are some that even reduce it to 70 years. This means that if you want to take out a 60-year mortgage, your repayment period can only be 15 years, at most, so the loan payment will be high.

Therefore, if you take out a mortgage with a certain age, it is essential to have a lot of savings and income for the bank to accept it.