When a lender judges about the availability of Mortgage in any application, first of all he will check the applicant’s credit report. Here he checks the no. of open credit accounts that the applicant has. This is important because if you have many open credit accounts then naturally it can be assumed that your payment will be in all those credit accounts also. So the risk is higher than one or two credit accounts. The lenders will also see in details the open credit account, it involves about your payment history with the other creditors.
Second important thing is to know about the total no. of closed accounts you have. Lenders will examine your closed accounts carefully. They will also notice that if there is any major account has been closed or not. If many accounts closed at a short span of time then it is also a matter of concern. He can ask the applicant about the reasons of closing those accounts at the same time.
Another very important thing that is considered before the application approved is the total length of the employment. This is so important because the payment of the loan is directly dependent on the applicant’s employment. If the applicant has longer service period then the change of payment is lot secured rather that a shorter service period. So the approval of application is very much depended on the employment period.
If it is found that the applicant is not stable in his job then the change of being getting the application approved is lesser. But it will be lot easer if he is stable in his job and worked for many years. This is because; the person who is not dependable in his work can’t be dependable for a loan payment.