Are you applying for a new mortgage or a mortgage refinance? Its all too common a situation when you have applied for a mortgage with all the hope of moving into that new house only to find out that your financial institution has turned down your application for a mortgage refinance. All those dreams of a new home come crashing down in flames. But then, this need not happen if you get educated about how these mortgage issuers work and then do exactly as they want you to. So, what are these ways?
Below are the five most popular reasons why mortgage applications get rejected - some of them even at the final stage when you are all gung-ho about moving into the new house. By avoiding these five traps, you stand to have a better likeliness of actually having your application for mortgage approved.
1. A Low Credit Rating
Do you know the first thing a mortgage lender will do when you ask them for a loan? One of the first thing the mortgage lender will do when you submit your loan application is to check your credit ratings. Your credit report is easily available to lenders on request if you have submitted an application to them. Getting your credit rating can easily be obtained from all three reporting bureaus. If you have had a bankruptcy or a liquidation of assets, your mortgage application might be already shot. Even things like late payments can be too bad. All kinds of loans are checked - your credit card loans, your personal loans, your business loans, etc. In fact, a lending instruction will go as far as evaluating how you paid back your student loans as they evaluate whether or not to approve your mortgage.
2. High Price of Property
Some sellers would peg a very high price on the property they are selling. This could be because of several factors like location, amenities, condition of house, etc. But the lenders might find such high prices quite unrealistic to finance for. If there's a property whose worth is just about 100,000 in the market, but someone is wishing to sell it for 500,000, then no seller would want to come forward to finance it. This is one more reason why mortgage applications fail.
3. Appraisal Value of Property is Low
This ties in with the above point, actually, but it is different. When you make a mortgage application, the lenders will send their experts to the venue to check out the property and to assess its market value. This step is called as appraisal. Many times, the mortgage application is rejected at appraisal because the value of the property is assessed to be lower than what is applied for.
4. Insufficient Funds in Bank Account
You are not going to get all the funding for the property from the mortgage. You will have to shell out 5 to 25% of the value from your own pocket. Plus there are the fees due at closing to consider. The lenders will dig into your bank account for these fees. If you do not have the right funds ready for them, they will reject. Yes, many lenders just reject without justifying the reason, when the actual reason might be that they have looked into your bank account and made the impression that you would not be able to pay the remaining charges and property value.
5. Too Much Debt
Struggling under a lot of debt is never helpful and especially not good for your mortgage application. If you have too many loans that you are somehow juggling, the lenders would not like to burden you with another. Your level of debt can easily be see on your credit report.
Showing posts with label Reasons. Show all posts
Showing posts with label Reasons. Show all posts
Wednesday, February 13, 2013
Wednesday, January 23, 2013
Why Plagiarism Happens - Top 5 Reasons
Plagiarism has occurred for thousands of years in various forms, although it wasn't until recently that it became a dangerous problem. Online plagiarism has become rampant, difficult to detect and threatens the intellectual property of numerous individuals and businesses. Just as physical property is protected by our laws, ideas also are meant to be guarded by our legal system. Unfortunately, the theft of an idea is far more difficult to track then stolen physical property. Our ability to detect and prevent plagiarism is extremely important for various industries, including publishing, music, research, education, media and finance.
I'd like to kick off this post by getting to the root of the problem: why does plagiarism happen in the first place? What are the top 5 reasons that cause plagiarism? Answering these questions can help us understand where to look for plagiarism and allow us stop it at the source. I'd also like to take a look at the current cutting-edge technologies that are helping us detect and prevent plagiarism. Feel free to join in the conversation and add in any relevant comments.
1. They don't know what plagiarism is.
Many people have heard about plagiarism and know it is a bad thing, but aren't quite sure what it really is. The Merriam-Webster Online Dictionary's definition of, to "plagiarize" :
* to steal and pass off (the ideas or words of another) as one's own
* to use (another's production) without crediting the source
* to commit literary theft
* to present as new and original an idea or product derived from an existing source.
Essentially, plagiarism is stealing someone's ideas and presenting them as your own.
2. They don't know how to properly use citations.
One way that plagiarism is easily preventable is through the proper use of citations. Crediting another author or creator with their own ideas goes a long way in using their ideas to further your work. Some simple research on how to properly site another author can be the difference between plagiarism and attribution.
3. Not thinking ahead - lack of time & resources.
Much of the time plagiarism boils down to a person not thinking ahead and leaving something to the last minute. If a research paper has a next-morning deadline and no progress has been made until the night before, a person may convince themselves that plagiarizing is their best option.
4. The internet makes it easy.
The internet makes it extremely easy to find and use other people's work. It's as simple as copy-and-paste. This 'low hanging fruit' causes many people to plagiarize without thinking about the legality of the act.
5. They don't think they'll get caught.
Many people who plagiarize use the 'many fish in the sea' theory- rationalizing that their chances of getting caught are extremely slim due to the vast number of people who are committing the act. The truth is, many people do slip through the cracks and get away with plagiarism.
This reality is changing however, as new plagiarism software solutions are pushing the technological boundaries on detecting and preventing plagiarism. Top of the line plagiarism software allows individuals and businesses in various industries to efficiently search the web for duplicate content. These solutions provide the tools to detect even the slightest instance of plagiarized content on the internet. As this technology continues to advance, far fewer people will get away with an act of plagiarism.
I'd like to kick off this post by getting to the root of the problem: why does plagiarism happen in the first place? What are the top 5 reasons that cause plagiarism? Answering these questions can help us understand where to look for plagiarism and allow us stop it at the source. I'd also like to take a look at the current cutting-edge technologies that are helping us detect and prevent plagiarism. Feel free to join in the conversation and add in any relevant comments.
1. They don't know what plagiarism is.
Many people have heard about plagiarism and know it is a bad thing, but aren't quite sure what it really is. The Merriam-Webster Online Dictionary's definition of, to "plagiarize" :
* to steal and pass off (the ideas or words of another) as one's own
* to use (another's production) without crediting the source
* to commit literary theft
* to present as new and original an idea or product derived from an existing source.
Essentially, plagiarism is stealing someone's ideas and presenting them as your own.
2. They don't know how to properly use citations.
One way that plagiarism is easily preventable is through the proper use of citations. Crediting another author or creator with their own ideas goes a long way in using their ideas to further your work. Some simple research on how to properly site another author can be the difference between plagiarism and attribution.
3. Not thinking ahead - lack of time & resources.
Much of the time plagiarism boils down to a person not thinking ahead and leaving something to the last minute. If a research paper has a next-morning deadline and no progress has been made until the night before, a person may convince themselves that plagiarizing is their best option.
4. The internet makes it easy.
The internet makes it extremely easy to find and use other people's work. It's as simple as copy-and-paste. This 'low hanging fruit' causes many people to plagiarize without thinking about the legality of the act.
5. They don't think they'll get caught.
Many people who plagiarize use the 'many fish in the sea' theory- rationalizing that their chances of getting caught are extremely slim due to the vast number of people who are committing the act. The truth is, many people do slip through the cracks and get away with plagiarism.
This reality is changing however, as new plagiarism software solutions are pushing the technological boundaries on detecting and preventing plagiarism. Top of the line plagiarism software allows individuals and businesses in various industries to efficiently search the web for duplicate content. These solutions provide the tools to detect even the slightest instance of plagiarized content on the internet. As this technology continues to advance, far fewer people will get away with an act of plagiarism.
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