Home Mortgage Application 

After deciding to buy a new home and finding the right one among the numerous real estate properties, people are usually aware they must get a loan to achieve their goal, but usually not understanding the process that a home mortgage application involves.

Shopping the mortgage package that best meets your financial needs may not be as simple as you might imagine. Many lenders have strict credit standards that often end in rejecting your application when you do not qualify for any given reason.

A discouraging experience, if your home mortgage application is rejected by a lender, however, it does not mean that all lenders will reject your application or that you will not be able to qualify for another type of loan especially designed for people who fall within certain criteria.

There is no standard for lenders' credit standards, but in general terms there are two items on your application of particular interest for lenders: your financial information and your credit score. Failing to fulfill these requirements according to their expectations is usually the cause of many rejections.

Financial advisors suggest trying someone else, especially if this is your first home mortgage application. Getting through the process is easier when you learn more about general criteria which rules the granting of a home loan, and your legal rights to fair lending based on the Fair Housing Act and the Equal Credit Opportunity.

Fair lending treatment will not help you to repair a damaged credit or improve your financial situation, but it will prevent a lender from offering you less favorable terms or determine your qualification for a loan for reasons such as your color, race, sex, marital status, national origin or any other discrimination factor.

If you believe that the problem is your credit score to getting your home mortgage application approved, there are credit repair companies that can help you to improve your score, although you can do it by yourself, but if you feel that discrimination is the reason behind a rejection, you can file a complaint.

Federal law protects home buyers and there are several federal agencies monitoring compliance to the Fair Housing Act by particular types of lenders. Discrimination acts are not seen as often as they once were when you apply for a home loan but still exist, and you must be aware of them.

Some lenders may consider that you do no qualify for a loan if your financial information includes the receipt of public assistance funds, if you have children under the age of 18, or you are handicapped, all of these factors are considered as discrimination according to federal law, so lenders may not treat your application differently for any of these reasons.

If you feel that you are victim of discrimination, contact The Department of Housing & Urban Development (HUD), Office of Fair Housing & Equal Opportunity, Room 5204, 451 Seventh St. SW, Washington, DC 20410-2000, call at 1-800-669-977 or 1-800-424-8590.

When your home mortgage application is rejected by a lender for fair reasons, there are many other lenders that you can easily find by doing research to find alternative mortgage packages available for people with special requirements or failing to meet strict financial criteria.