For many first time home buyers the prospect of owning a home is like a dream come true. For some, the window comes crashing shut at closing time because of some sort of snag in the mortgage process. For those who experience mortgage rejection hope is not lost. What causes the application to not go through? For many, it’s the banks.

Even before tightening up of sub-prime lenders, a fairly hefty percentage of mortgage loan applications have been rejected. For others, it’s the delay in pushing through loan paperwork to the banks. Some people even have to face rejection because of the seller accepting another bid before the house closes.

Often under-contract signs carry very little meaning. A fact that’s great if there’s a property to-die-for that someone else beat you to. It’s quite possible albeit rare that during the closing process a seller will receive a significantly better offer whether in terms of net sale amount, or just a buyer with much better financial credentials. For the mortgage loan to fall through, all the seller has to do, in many cases, is return the security fund. The amount of money deposited as a security fund is usually .5-1% of the home cost that is put up front to hold the property while you secure a home loan.

Others, facing delays in getting their loan paperwork pushed through can also find mortgage rejection. For people looking to reduce this possibility of a rejection, pre-qualifying and financial seasoning strategies can help make everything move a lot smoother. Pre-qualifying means that you go ahead and apply for a loan, and banks will do a perfunctory analysis of your financial credentials and approve you for an amount that is relatively close to the maximum they’re willing to lend. Just because you get this leverage do not expect the road to mortgage closure to be smooth and straight.

After making an offer and starting the loan process, there is still the need to close. You can lower your chances of mortgage rejection by following two small suggestions. First, season your money. Banks will look at your average daily balance in your checking and savings accounts for the last six months. If you get rejected today, start saving money from your bank account, and avoid frivolous purchases. Six months after closing costs of one to three percent have been in your account’s daily try for another mortgage. An average balance of three thousand dollars in your banking account will the last six months will greatly help you close on a $100,000 home.

Second, to help avoid mortgage rejection, stay with your current employer. Employee turnover is frowned upon when it comes time to close a mortgage application. If you have put in a two week notice, there’s a very good chance on closing day itself they’ll call your employer and not only find out, but also reject your loan application.

It is possible that you need more than a successful mortgage in the future to cope with the feelings you have present with mortgage rejection. Understand that the business of lending is a very speculative one, and should you find yourself ineligible for a loan it is not necessarily a reflection of your personal worth. Instead, some formula plugged in some numbers and determined whether or not a mortgage was in the lender’s interest. Debt counseling or simply talking with close friend can help you deal with the feelings associated with mortgage rejection.

Whenever you do feel up to pursuing another mortgage and continuing your home buying efforts, you may want to begin by speaking with a lawyer or home buying agent. Using a lawyer or buyer’s agent can be a valuable tool for finding other tips to help avoid a future mortgage rejection. Also, they may be able to advise you on some very useful and creative tips to help you land a mortgage loan approval.