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Reasons Banks Deny Home Loan Applications

Some Credit Issues That Cause Banks to Deny Home Loans:  A. Insufficient Liquidity, ie enough money in the bank. 
 B. Lack of Income- buyers must have consistent income for the last 2 through 5 years to prove they can afford the home loan payments. C. Lying on the application. Banks today won’t accept “stretched truth” on applications any more. D. Debt-to-income ratio..If an individuals debt to income is greater than the bank allows they won’t approve the loan.
E. Unemployment-Banks want to see usually 2 years of stable work.  F. Self-employment..It is hard to get approved if your income is totally dependant on self employment. Not to say it can’t be approved, just much harder with much more documentation to bank.

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