Having your own home is a sign of financial security. Consequently, it might also be the most expensive investment a person can make in their lifetime, so it makes sense that they’ll go the extra mile to protect it. However, not everyone can afford to pay for a house out of pocket, so mortgages are their best bet.

A mortgage is a loan taken out on the house to purchase or rehabilitate it and pay off the loan at a future date. With this, the borrower is the primary beneficiary of the interest paid by the lender. Naturally, an application must be approved first because lenders will want to know if the borrower has the means to pay off the loan. Conversely, a mortgage can also be rejected for various reasons. These include:

#1 – Low Credit Score

All lenders will want to know that their money is safe, making credit score one of the most critical factors in the application process. Many lenders will have a minimum and maximum score to apply, so you must have a score above and below the cutoff value. The cutoff value is the minimum score that a borrower must have to be approved for a mortgage loan.

#2 – No Credit History

Those who have never obtained a loan or have no credit history cannot apply for a mortgage loan because the lender will not have anything to base their decision on. If you have no credit history, you’ll need to find another way to get a house.

Furthermore, the credit history of your spouse or partner will be looked at, as well. Lenders will not be as lenient if the other person has no credit history or has a poor one. If one applies, the other shall be subjected to the same scrutiny.

#3 – High Debt-To-Income Ratio

If your debt-to-income ratio is too high, you have other forms of debt besides the mortgage. Hence, it’s a signal to the lender that you’ll be unable to meet your responsibilities and make your monthly payments. It also means that you lack the discipline to handle your finances and make responsible decisions.

Furthermore, if you have an income that’s too low, the lender may think that you’re unable to pay off your debt as it is. Consequently, they will not extend you any help.

#4 – Small Down Payment (Or Lack Thereof)

A down payment is a sum of money paid upfront, after which the borrower is considered to have equity in the house. The greater the down payment, the higher the likelihood of approval. If you have nothing to put down, you will have no equity in the house, and the lender will not loan you any money.

At the same time, a small down payment will also send up a warning flag because it signals that you might default on the loan. Eventually, you’ll lose your house, which will also mess up your credit score.

#5 – Missing Information during Application

When you apply for a mortgage loan, you’ll have to fill out a loan application. This is to gather information about you and your income in most cases. Some of the essential information you’ll have to provide should include your social security number and home address.

However, when you miss out on specific information, you haven’t done your due diligence or tried to hide something from the lender. This makes the lender question your intentions, so you might not be approved for a mortgage loan.

#6 – Recent Job Change or Unsteady Employment

A job change will jeopardize your mortgage application because lenders need to know that you’re secure in your job. They need your employment history to be as consistent as possible. Moreover, they also want to see if you have a stable income. If your payment has been steady and consistent, you will quickly be approved for a loan. If not, the lender will be reluctant to lend you money.

As for employment, you may be asked for proof of employment, such as your pay stubs and W-2 forms. You might also be asked to submit a letter from your supervisor stating that you are still employed with the company.


Having your home is quite a privilege, especially if you’ve done your research first. Although mortgages are an excellent way to own your home, they can also be quite restrictive. You’ll have to ask yourself whether or not you can afford the payments or if you can handle the financial burden at all.

If you’re looking for a mortgage in Colorado Springs, Total Lending Concepts has what you need! We understand our clients’ financial situations, so our comprehensive mortgage programs will help you be one step closer to our dream home, all for affordable rates and reasonable terms. Reach out today to learn more!