If you don’t fully understand the home loan process, a lender might surprisingly reject your home loan application. Getting a mortgage has become harder. In fact, mortgage lenders reject about 30 percent of home loan applications. Many applicants don’t meet the credit requirements, whereas others don’t have enough cash for their down payment.
If moving into your first place, being denied a mortgage doesn’t mean having to stay home with mom and dad. You have options, such as moving to an apartment.
With tighter home loan guidelines, many apartment builders are constructing apartment homes that feature a ton of desirable amenities, such as marble countertops, hardwood floors, stainless steel appliances and a resort-like appearance. Moving to an apartment isn’t necessarily a bad experience. The key is finding an apartment that you like and one that feels like a house. Plus, renting an apartment allows time for you to improve your credit and save additional money.
Think of moving to an apartment as a stepping stone to owning your own house. Paying rent and utilities can prepare you for ownership. Check out local apartments and see what they have to offer. You might be surprised by the selection.