Top 5 Reasons Why Mortgages are Denied

why mortgages are declined

1.  Not Enough Income

One of the most common reasons why mortgages are denied is that prospective borrowers carry too much debt compared to their incomes.  For Fannie Mae or Freddie Mac conforming loans, the maximum debt-to-income ratio is usually 45 percent.  This means that your gross monthly income divided by your total monthly debts cannot be more than 45 percent.  



  • Minimum credit card payments
  • Car payments
  • Student loans
  • Alimony/child support payments
  • Mortgage payment including real estate taxes, homeowner’s insurance, PMI & HOA or condo fees.

Do NOT include:

  • Credit card balances that you pay off in full each month
  • Utility bills (i.e. electric, gas, cable, internet, phone)

 Note:  If you are applying with a co-borrower, include both you and your co-borrower’s monthly debts. 

2.  Unstable Income

For self-employed borrowers or people who receive bonuses, commissions  or tips as part of their income, there is typically a two year history needed.  Income from rental properties, 1099s or investment income like capital gains would also be included in this category.  For this type of income, an average of the last 2 years, as reported on the tax returns, will be used.     

For borrowers who are re-entering the workforce after a long period of time, a 6 month period of employment will need to be established before the income can be considered “stable”.

3.  Bad Credit History

Bad credit is by far the most common reason why mortgage applications are denied.  Late payments, judgments, collections or bankruptcies always have the potential of causing issues with your application.  It is therefore critical to review your credit report with a mortgage professional well before you plan to submit offers and apply for a loan.  

Free credit reports are available online, but these usually contain only one score from one credit bureau.  Mortgage companies will pull from all three credit bureaus and use the middle score.  Most issues with credit reports can be repaired in a relatively short amount of time if you are aware of the problems.

4.  Low Appraisal

Before applying for a mortgage, it is important to review recent sales in your neighborhood.  An appraiser will compare your home with 4-6 other homes that are most similar to yours and have sold within the past 3-4 months.  To start, you can go to sites like Zillow & Trulia, but it is always better to receive information directly from a local real estate agent since their data will be most accurate and up to date.  

5.  Undocumented Funds

Many people do not realize that all funds used at closing must be sourced with documentation. Therefore, any transfers or large deposits (not including income from your job) will need to be explained and tracked by providing a copy of the check deposited and/or a monthly bank statement from the account the money was transferred from.  Every penny must be accounted for so the underwriter can verify where it came from.  Do not deposit cash into your account unless it is at least three months before closing. 

Co-mingling funds with a business is also not a good idea because the lender will require proof that using those funds will not affect the health of the business.  It is always best to have your money put aside in a savings account months before you are planning to buy a house.  

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HomeJabTop 5 Reasons Why Mortgages are Denied

2nd Week of Filming Starts for Local Real Estate TV Show is now in the 2nd week of filming for the new TV show, “HomeJab Live”.  The show will feature local properties for sale broadcasted to the entire Philadelphia & South Jersey markets on WMCN.


Do you want your home to be on TV?

Schedule today and pay only $189 per property.  Included with TV distribution is a copy of the online video and 30-40 professional photos of the property.

Filming this week 9/29 – 9/4
We can have our crew out to your house any day this week and film everything in about 45 minutes.  We will then edit the video so that you have it back in 2-3 days.  For photos, the turn around time is only 24 hours!


Our video marketing experts will show you exactly where to post your video online and how to get thousands of views for your video on social networks and blogs so your property sells fast!


And, we will feature your home on our weekly real estate TV show with a distribution to 2.6 million households in the PA-NJ area.


To schedule your shoot, please click here or call (215) 687-4342.

Sneak Peek of new TV show

Example of online video tour

Contact us today to schedule your professional video & photo shoot or call (215) 687-4342.

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HomeJab2nd Week of Filming Starts for Local Real Estate TV Show

Lender of the Week

Caliber Home Loans, based in Texas, is our pick for lender of the week.  Caliber’s 30 year fixed rate loan is the lowest available in the country with no fees.

We have also found them to be extremely quick with underwriting times (usually 24-48 hours).  It is not uncommon to have a loan approved with a commitment in 1 week or less.

Here is the minimum documentation needed:

  • 2 Year of Federal Tax Returns w/ W-2s
  • 2 Months of Bank Statements
  • 2 Most Recent Pay Stubs
  • Purchase Agreement or Current Mortgage Statement (for refinances).

Caliber does not charge any fees to apply or lock in a rate.

Click here to being a secure online application

Click here for a fast online quote

Click here for today’s mortgage rates

Caliber Home Loans

HomeJabLender of the Week

The Ultimate Mortgage

A new way for homeowners to save money.

The ultimate mortgage is a new way of searching for the best daily mortgage deals.  Search local, regional and national lenders to find the lowest priced loans and receive an instant online quote.  

There are no hidden fees and no costs to apply.  

We take the stress out of the mortgage process.  It is the “Ultimate Mortgage”.

Click here to search mortgage rates.

Get a Mortgage Quote

Instant Online Mortgage Quote

A Modern Mortgage Experience

Applying for a loan is more than just rates & fees.  The HomeJab Mortgage Marketplace is an online community connecting consumers with trusted mortgage professionals. Our site provides an easy to use search engine where consumers can tap into a proven network of loan consultants to seek expert advice in choosing the right loan product.  

Once your loan consultant has been assigned, you have direct access to a real human being so you can discuss your loan status at any time by email, phone or text.  We can also schedule a short meeting at your home, if you prefer, with one of our local loan consultants.  Just contact us with a time that works for you.     

The HomeJab Mortgage Marketplace allows home buyers instant access to finding the right lender with the lowest rates for any situation.  Click here to request an instant online quote.

You can also call us at (610) 945-2004.

HomeJabThe Ultimate Mortgage

Pennsylvania Real Estate Videos & Photography

We are proud to announce our recent launch in state of Pennsylvania!  At HomeJab, we are committed to producing the highest quality Pennsylvania real estate videos and photography services.

For all locations within 40 miles of downtown Philadelphia, we can schedule your shoot in 48 hours or less.  Our local production team includes some of the most talented filmmakers and photographers in the Philly area specializing in walk-through video tours, photography and aerial footage.

1304 Gabriel Ln. Warwick, PA

909 Castlehill Ln. Devon, PA

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HomeJabPennsylvania Real Estate Videos & Photography

5 Ways to Mess Up Your Mortgage Application

how to mess up your mortgage

1. Unrealistic appraised value

Overestimating your home’s value is a great way to hurt your chances during a home refinance. Many homeowners do not follow recent sales in their neighborhood and assume that the value is at least what they paid for it.  Today, one of the most common reasons why refinances do not close is that the appraisal comes back too low.

2.  Poor Paperwork

Homeowners who do not provide the right paperwork risk having their loan scrutinized by underwriters.  This will delay the process and risk a rate lock expiration.  It is extremely important to review document requirements ahead of time with your loan originator so that the process is fast and efficient.

3.  Home renovations before appraisal

Starting major (or minor) renovations to your home before an appraiser has completed an inspection is a very good way to get turned down for a mortgage..  Lenders will not close on your loan if the home is not in “move in condition” which means all rooms must be in working order.  If you are doing a cash out refinance for home improvement, wait until after the appraisal is complete to begin the work.

4.  Do not communicate

A lack of communication can really disrupt the loan process.  It is important to remain accessible and not to disappear.  Some times, further documentation is needed after the loan has been approved and before closing.  It might be your most recent pay stub or a paper trail of a large deposit into you bank account.  Stay in contact with your loan originator throughout the process and wait to go on vacation until after your mortgage closes.

5.  Work with a “Big Bank”

If you decide to work with a large retail bank for your home refinance, be prepared for a long, drawn out process (45+ days) and higher rates/fees.  The “Big Banks” have tons of loan requests every day and have no incentive to provide lower cost loans.  If you want the best available deal, it is important to work with a broker who can search through daily rate sheets from wholesale lenders.  These companies do not have the same name recognition as banks, but they offer the same loan products with better rates and fees.

You can search wholesale lenders instantly on RateJab to find today’s lowest mortgage interest rates.

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HomeJab5 Ways to Mess Up Your Mortgage Application

Local Real Estate TV Show to Premiere in September on WMCN44

“HomeJab Live” to Showcase Local Agents’ Best Listings is proud to announce a partnership with local Philadelphia television station WMCN44 to produce a weekly real estate TV show called “HomeJab Live”.  The 30 minute show will air on Saturday mornings throughout the fall and consist of 5 segments per episode profiling top agents in the area and their best listings.

Local actors will participate as “hosts” of the show accompanying real estate agents on a tour of the home.  During the segment, real estate agents will explain unique features of the home, important information about the neighborhood and answer questions from the host.  Viewers will also be taken on a tour of the property with aerial views of the neighborhood.  

“HomeJab Live” will capitalize on the success of popular TV shows like “House Hunters” and “Million Dollar Listing” but only showcase local Philadelphia area properties that are for sale located in Center City, the Main Line, Bucks, Chester, Montgomery, Delaware Counties & South Jersey.  

The show gives real estate agents and homeowners the opportunity to broadcast their listings on WMCN which is distributed on Comcast Cable and Verizon FiOS systems as well as DIRECTV and DISH NETWORKthroughout the Philadelphia, Pennsylvania television market to over 2.6 million homes.

For more information, please contact or call (215) 687-4342.


HomeJabLocal Real Estate TV Show to Premiere in September on WMCN44

Take the Stress Out of Buying a Home

These days, getting approved for a mortgage can be the most difficult part of the home buying process.  Our job, as your mortgage broker, is to make this time as simple and carefree as possible.  When you work with us, there are no headaches, no stress and no sleepless nights.  Here is how we make buying a home easy!

Clean Documentation

We will work with you upfront to make sure all of your loan documents are “underwriter ready”.  The #1 reason why loans have trouble getting approved, is that the borrower’s paperwork is not organized and complete.  The following is a list of documents needed with every mortgage application.

  • Last 2 years of tax returns with W-2s
  • Last 2 month’s of bank statements from the account you wish to use at closing
  • 2 most recent pay stubs
  • Signed purchase agreement

Communication is Key

Our loan processors are available whenever you are and however you prefer to communicate – email, text or phone.  Communication is essential for getting your loan closed on time and we are committed to providing the most convenient process possible.  Our goal is to close your loan in 21 days or less.  Also, we are constantly updating your real estate agent so that he or she is kept up to date on the loan process and we know the status of everything else going on with your deal.

Advanced Technology

At the core of our company’s principles, is the idea that we can lower costs by utilizing superior technology.  Our mortgage rate quote app searches through hundreds of local lenders to find the best priced deal available.

Did you know that lenders can change their rates multiple times per day?  By automatically downloading rate information from local, regional and national lenders, we are able to instantly compare deals and provide the most up to date rate quote when you are ready to lock in.

Friendly Support & Advice

Our average loan processor has over 10 years of experience in the real estate industry.  We have bought, invested, developed & built homes throughout New Jersey and Pennsylvania.  There is rarely a situation we have not been through ourselves.  So, please reach out to us with any questions even if you are not ready to apply.  We are a friendly, down to Earth group that loves to help!

HomeJabTake the Stress Out of Buying a Home

HomeJab Flips Philadelphia Real Estate Industry Upside Down

New Business Model to Revolutionize Local Philly Market and Help Home Buyers in PA & NJ

The dirty little secret in Real Estate?  Large bureaucracies and outdated labor models are responsible for large costs in homebuyers’ mortgages.

The founders of HomeJab discovered this hidden truth first-hand while working for large mortgage and real estate companies. “At the time, our mortgage team consisted of a loan processor, receptionist, a vice president of sales and the head of the department who reported to the CEO of the bank.  To this day, I do not know what these 4 people did for our department and why they needed to be there,” said co-founder, Joe Jesuele.

Fed up with an inefficient system and the fleecing of homebuyers, the HomeJab Mortgage Marketplace is founded on sound business principles that the industry has long forgotten:

  • Utilize Technology:  HomeJab uses the most advanced technology to search through hundreds of lenders allowing consumers to instantly find the best mortgage deals available in their local area.
  • Focus on Customer Service:  HomeJab only works on 15 to 20 loans per month guaranteeing that each client receives the personalized customer care they deserve.
  • Keeping Overhead Low:  By streamlining expenses, HomeJab is able to provide customers with lower costs compared to competitors.

The HomeJab team specializes in underwriting and processing all of their loans which cuts out the need for managers and administrative overhead resulting in thousands of dollars in cost savings for homebuyers.

“The truth is: inefficiency and mismanagement lead to high prices.  There is no way around it,” Jesuele concluded.

For an online mortgage quote, please visit or call (610) 945-2004.

About HomeJab:
For people who are buying and selling homes, Philadelphia based HomeJab is a real estate website that provides instant access to the best local real estate professionals and media providers.  Unlike traditional real estate search engines, HomeJab provides a combination of extraordinary technology and convenience for the modern real estate consumer.

Watch our 2 minute video and take a trip “Back to the Future”… 

HomeJabHomeJab Flips Philadelphia Real Estate Industry Upside Down