Your income is usually not verified at this point, but it is used in accordance with a multiple to see what you could probably afford. If the mortgage lender then checks your income, if you apply for a full mortgage and you realize that it is less than you indicated, it can reduce your mortgage price and allow you to get a mortgage contract in principle, then you have refused it. If your mortgage application is rejected, it can be not only frustrating, but also uncomfortable, as it can slow down or even end all the plans you`ve already made. Mortgage lenders want to know that you will be working long enough to pay off the mortgage they give you. If you look old, then it is very likely that you will be rejected in the mortgage agreement at the principle level and if not, then after. Always refused after always having a mortgage agreement in principle is quite common and could be for a variety of reasons, but generally there will be something on your credit file. There are a few common causes that could lead to rejecting your mortgage application after you have reached an agreement in princple, here are a few. If you have not approved an agreement in principle, you should ask why. Each lender has a unique valuation that is usually managed by an evaluation system. If you were rejected at that time, it`s probably because you didn`t score enough points in their evaluation. These people can see the negative credit file that you can get a mortgage contract in principle, and then see that it has been rejected by the mortgage lender if they do more detailed searches on your credit file.
A mortgage application is deeper. That`s because you`re going to pay for it and it shows that you`re ready to move forward. The review will be more comprehensive and detailed than the previous mortgage agreement in principle. If you miss payments for your current credit contracts or if you default on credit contracts, between the time you normally obtained a mortgage and you applied for your mortgage, you may find that your mortgage may refuse your mortgage application. An agreement in principle should not affect your credit score, as most mortgage lenders enter into an agreement in principle with a soft credit check that leaves no one but you visible footprints. Since you are the only one who can see the agreement in principle, make sure it doesn`t affect your score. Not all mortgage contracts are in principle deep enough. This means that some mortgage lenders only do a very basic review and may not check if you are fully eligible for the mortgage product they offer. Yes, but don`t panic! You still have a few options if your mortgage application is rejected after making a policy decision. First of all, a policy decision (a DIP) is an agreement given by lenders to say that, based on the information they have about you, they should be able to give you a mortgage if you ask for one with them. The lender will not check the value of the real estate, but will speak. If, by conducting a real estate valuation, you realize that the property is less valued than expected, then this will reduce your mortgage price and will probably see that you will be rejected after obtaining a mortgage contract in principle.