While a loan applicant may have a hefty amount of money to put down, if they have a credit score that is below a certain number, they will find it to be a challenge to obtain financing. Also, if the applicant doesn't have a substantial amount to use as a down payment (20 percent is usual), and they are lacking in a good amount of liquidity, many lenders will back away from providing the necessary funds.
Despite having an acceptable credit score and down payment, if they cannot prove that they have had income for the past few years, it will be very difficult for them to obtain approval of their loan. This may prove to be an obstacle in the process of getting a mortgage, especially for those applicants who are retired.
As for dishonesty in making an application for a mortgage, lenders will not allow truth-stretching on applications.
Other roadblocks to getting a mortgage are if the applicant has a disproportionate amount of debt and their debt to income ratio is higher than the lender's requirements. If the borrower is unemployed, they will most likely be turned down for a loan, as most lenders insist on the applicant having at minimum two to five years of continuous employment.
Those who are self-employed are being scrutinized more thoroughly than in the past, and they may find that it may be somewhat difficult for them to obtain financing.
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