There are several reasons why homebuyers may be denied when applying for a mortgage. Pre-existing debt can be one of these reasons. Debt is one of the more common reasons for loan denial in California and throughout the country. When homebuyers have a great deal of debt, it is detracted from their income during the mortgage qualification analysis conducted by the bank. In some cases, debt reduces the amount of income below the necessary amount needed to cover future monthly mortgage payments.Read More