YOU ASK:

I was approved for a loan but not for mortgage insurance?

WE ANSWER:

The mortgage institutions will usually not grant a loan to you unless you get mortgage insurance coverage, especially if you can only afford to pay a down payment of less than 20% of the property's value.

So, it is still possible for you to get mortgage loan approval from your bank but not for mortgage insurance. If you are able to pay more than the 20% down payment, you don't even need mortgage insurance.

There may be instances where you are not accepted for coverage of mortgage insurance because of eligibility issues. This may be because of your health condition, your occupation and your credit standing.

Most mortgage insurance companies (before they will agree to issue the insurance) require that you are the person named in the mortgage contract. They also will check if you have been paying your mortgage amortizations faithfully and that you have not missed any payments. Thus, if you have a bad credit history, it is possible that the mortgage insurance company will reject your application for insurance coverage, as you have previously shown yourself to be a bad credit risk.

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