5 ways you will not get a home loan to buy a home

Most people given a choice would desire to purchase a home, arguably, given their financial situation, and their ability to handle a monthly housing payment. Oddly enough, there are times from a lender’s perspective you might not get a home loan and it has nothing to do with your credit score, credit, history, income, or down payment. Here are five things preventing you from successfully getting a home loan and what you can do to get around them…

  1. Your inflexible Let’s say you’re getting prequalified to purchase a home and your cash, credit, income, and down payment support a purchase price of $500,000. Let’s the house you want is $600,000 and it’s just too far out of your range. You can afford something less such as a condominium for 400,000 or less, however, you really want to buy a home. Maybe it means having to borrow on your 401(k), but you just don’t want to do it just due to your personal preference even though you can and it will not hurt your financial situation. It also might mean having to ask mom or dad or brother or sister or grandma or grandpa for a down payment, but you don’t want to do that because you want the pride of ownership to do it on your own. Simply put you’re being inflexible. Real estate is like life series of negotiations and trial and error so you can ultimately make the most informed decision for you and your family.
  2. You don’t want to ask for help even though it’s available. Pride of ownership is a big deal to be able to say you did it on your own is a good thing however when push comes to shove, particularly if you have someone in your life, who can help you ask them for help it’s something you might have to swallow if you’re desiring to purchase a home and it might mean having to pony up the courage to ask mom or dad, or grandma or grandparent to cosign on your loan if you can handle the payment,t swallow your pride because your pocketbook will thank you over the course of time.
  3. You’re unorganized in order to get a loan to buy a home you need to be able to provide paystubs, W-2s, bank statements, and in some cases tax returns. If you don’t know where any of the stuff is, and you’re trying to borrow money, it will be problematic. The reality of it is that you need to provide these things to the lender so they can determine what you qualify for and give you choices and options as relates to being flexible. The more paperwork you have and the more information you tell them the easier it will be for them to help you be successful.
  4. You’re only available after 5 PM. This one hits home for a lot of people because everyone works Monday through Friday from 8 to 5. Mortgage companies also work Monday through Friday from 8 to 5 in unison with most people’s daily schedules. If you’re only available to get preapproved with a lender or work on the conditions of your loan process after 5 PM and you were completely unavailable through phone email or text until 5 PM on a daily basis you’re setting yourself up for failure. That’s just the reality of it. If it’s important to you, you’ll find a way.
  5. You’re indecisive You get preapproved, you begin the home search, you’re super excited you look for several months maybe even several weeks, and then for whatever reason, you just stop you just get discouraged. You start to think about it and perhaps even overanalyze it to the point where you just decide it’s just too much that’s OK. Maybe it’s just not the right time for you and that’s a possibility that can only come with time but is definitely a reality for some families. It’s just a fact however if you want to buy a home, you need to move out of the on-again-off-again approach. The best course of action is to get preapproved immediately to get a framework for what you can afford today and or have that lender create for you if they’re willing to, a long-term plan to help you and then look for houses in alignment with a payment supportive of your monthly budget. That is the best course of action for success and long-term prudent financial planning.

If you’re thinking about getting prequalified for a mortgage or want to learn more about what it might take to become a homeowner or to successfully secure a home loan for a primary, secondary, or rental property start today if I get a quick quote today.

 

 

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

The Risks of Chasing a Lower Mortgage Rate

Why Chasing a Lower Mortgage Rate Can Backfire When buying a home, it’s natural to…

A woman sitting at a kitchen table looking through documents with an American flag and framed military photo beside her, symbolizing a surviving spouse exploring VA loan options.

VA Loan Options for Surviving Spouses

Understanding VA Loan Refinance Options for Surviving Spouses Losing a spouse is one of life’s…

California homes near wildfire zones highlighting insurance challenges due to climate change.

Why Home Insurance Is Skyrocketing in California—and What Buyers Should Know

​Climate Change and Mortgage Challenges: Navigating Homeownership in California In recent years, climate change has…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!