It's not easy for many people to apply for a mortgage. If you're going to buy a house, a successful application for a mortgage is a crucial step. To be successful in obtaining loans from banks or public funds, your personal qualifications must meet their requirements. Otherwise, there may be situations where the mortgage is not approved. So, what's going on with the mortgage? What are the main reasons

What's with the mortgage? What are the main reasons

**1. Letter of request**

First of all, the Bank and the Provident Fund Center will attach great importance to your credit records. If you have a stain on your credit report, like a loan record that is overdue or outstanding, the bank may consider you to be a credit-risk borrower and reject your loan application. Before preparing to apply for a mortgage, it would be advisable to check their credit reports to ensure that there was no negative record。

**2, Income shortfall**

Applying for a mortgage also requires income. Usually, your monthly income is at least twice the monthly mortgage, which ensures your ability to repay. If you have other outstanding debts, banks may further increase the demand for your income flow. Thus, stable and sufficient income is an important condition for access to housing。

**3. Insufficient qualifications for house purchase**

In some municipalities, the acquisition of housing requires the qualification of the purchase. If you have not met these conditions, even if you have sufficient funds and good credit, you may be denied a loan application. Therefore, before preparing to purchase a house, it is important to confirm that it has the relevant qualifications, which can be confirmed by asking the authorities or professionals concerned。

**4. Houses do not meet requirements**

The type of house purchased also affects the approval of loans. As a general rule, small property units cannot be applied for through loans because they have greater property rights problems. In addition, banks and the Provident Fund centres have specific requirements for houses to be purchased and usually support eligible properties such as limited-priced commodity houses。

**5. Excessive debt ratio**

FINALLY, BANKS ARE ALSO VERY CONCERNED ABOUT THE INDEBTEDNESS OF BORROWERS. IF YOUR DEBT RATIO IS TOO HIGH, THE BANK WILL ASSUME THAT YOUR FUTURE REPAYMENT WILL BE UNDER CONSIDERABLE PRESSURE, AND THE RISK WILL INCREASE. USUALLY, WHEN YOUR DEBT RATIO EXCEEDS 50%, THERE IS A HIGH CHANCE THAT THE BANK WILL REJECT YOUR LOAN APPLICATION DIRECTLY。

In general, there are many reasons why mortgages have not been successful. It is important to ensure that these conditions are met before applying for a loan. You can prepare the relevant information in advance and then consult the bank for more detailed information。