Though mortgage lending was up a big 38% from 2011, there will still thousands of declined mortgage applications. In fact, the top mortgage lender in the United States, Wells Fargo, denied 84,687 of the 399,911 home purchase applications it received (21.2% rejection rate), including those that were pre-approved, according to a Marketwatch analysis.
Gambling is deemed more of a risk than being self-employed especially if there is no trace of regular savings but a build-up of debt instead. You need to be aware that if you're a professional gambler, this activity is seen as a risk and could result in your mortgage application being declined. When you apply for a mortgage and your loan application is rejected, the financier will issue a mortgage loan rejection letter explaining why you did not qualify for the loan. Credit providers mainly reject mortgage loans due to insufficient income, poor documentation, small down payment, issues with the property and poor credit history.
Mortgage Declined Due To Gambling Money
Need a little advice on this. Went for mortgage approval and was denied today the only reason being my betting online. I'm totally gutted. I don't drink, smoke and it's what I spend my extra cash on. I have never missed mortgage payment on my current property and I have it up for sale now. Gambling is an issue only if it's frequent, if you place bets you can't afford, or if your mortgage advisor thinks it might impact your mortgage repayments. The same goes for spending money on ‘silly' things. We all do it, so go out and have a good time! Just make sure to.
Other items being scrutinised by banks include tuition fees, Sky digital subscriptions and mobile-phone bills.
Chief executive of mortgage debt advisory firm Negotiate, Trevor Grant, said gambling transactions on bank statements are often used as a reason to decline a mortgage or restructure application, regardless of any other financial information submitted and its strength.
Mr Grant said: 'When a lender assesses an application for reduced mortgage repayments due to financial difficulty, the customer is required to submit a detailed application, often including current account and credit-card statements.
'Not unreasonably, lenders will form a view that if the customer is struggling to pay their mortgage they should be tightening their belts, and they consider gambling, for example, as a non-essential activity and therefore should be one of the first social indulgences to be cut,' he said.
Mortgage Declined Due To Gambling Losses
The director of the Irish Mortgage Corporation, Frank Conway, said he has seen cases where lenders have questioned mobile phones, school tuition costs and Sky bills.
Mortgage Declined Due To Gambling Winnings
A spokesman from the Irish Banking Federation said it is important that borrowers seeking to restructure their mortgage repayments carefully review all of their income and expenditure as part of discussions with their lenders, in order to help identify a 'new, workable repayment arrangement'.
