Mortgage Application Got Rejected? Here’s What To Do Next
It is perfectly understandable to have that desire of wanting to have your own home, but unfortunately there are times that you can’t have what you want when you want it. Just like when you apply for a mortgage loan and you get denied, it is always great to have an optimistic mind, but remember that just because you got denied does not mean that you will never get a mortgage. Find out what are the things that may have caused your application to be denied in the first place.
Talk To Your Loan Officer
The very first thing that you must do is talk to your loan officer because you must find out the reason why exactly you have been denied in the first place. It is the lender’s responsibility to let you know what are the reasons for your rejection in order for you to figure out how to be qualified once you re-apply.
Keep in mind that it is nothing personal, anyone that does not qualify or may have several strives can also get their applications denied.
Check Your Credit
One of the main reasons why people get denied on their application is because of their bad credit score. It is always ideal to check your credit score from time to time so that incidents like this won’t affect any other loan transactions. If you have a very bad one, it is never to late to fix it just as long as you make sure that your FICO is acceptable. If you don’t fix your bad credit score then there is no way that any lender will approve your application for a mortgage.
Manage Your Debt
Another thing to consider is how much debt do you have and how it is currently doing. You may have an impressive credit score but if you are in so much debt that you have been ignoring then you will still most likely get rejected. It is literally simple logic, no one will lend you money if you have a really bad record at paying back your debt. That includes your credit card bills, auto payments, student loans and other types of loans you have.
Your job also plays a big part in this, because your monthly income will determine if you are able to pay for these debts that you already have at the moment. At the same time, the lender will figure out if you will be able to pay for the mortgage loan if ever your application is approved.
However, student debts nowadays are literally taking over people’s lives especially those who are freshly out of college and even those with stable jobs already. They can’t usually get a mortgage loan because of this particular debt, which is why instead of getting a regular one it is ideal to consider the income-based repayment plan, which has the power to reduce the monthly payment plan.
Finally, just because you have been rejected the first try does not necessarily mean that you cannot try and look for others again. It is literally like buying clothes, there may be some that you liked but did not fit your perfectly or the style just doesn’t go well with your personality, it doesn’t mean that you’ll just go home empty-handed because what you would normally do is to go to their stores and see if anything fits you the best.
It is literally the same when you apply for a mortgage because you can always just try to go to a different lender. This is why experts believe that it is ideal to fill out at least two to three applications to send to different lenders so that rejection would not be as harsh since it also saves you time. If you have been rejected so many times, try to figure out what is it exactly that can be the hindrance and focus on it, that is because no one gets rejected to a mortgage loan without any valid reason.
More in Loans & Mortgages
How to be Better at Work With a Job Makeover
You may start noticing some unpleasant occurrences as part of warning signals. When you see that your professional life is swinging...February 21, 2019
Porsche Makes in Six Seconds What Some US Employees Make in One Week
Staveley Head’s Report Two months ago, Staveley Head, a motor insurance provider based in the UK considered the financials of fourteen...February 21, 2019
How To Be Debt-Free in 2019
The yuletide in the air is almost fading away, yet we are faced with the big task of checking out our...February 21, 2019
Ariana’s Thank U, Next Beats Beatles’ Record after 60 Years
Ariana Grande is so talented that whenever she picks up a microphone, her voice sends chills down our spines. The gifted singer currently...February 21, 2019
Business Tips for First-Time Business Owners
Starting and owning a business is everyone’s dream. Yet, the road to achieving this dream is not all smooth. Most young...February 21, 2019
Celebrities That Get the Most Pay for Each Sponsored Instagram Post
It turns out that the social networking app, Instagram, known to a lot of people as a mobile application for sharing...February 21, 2019
Study Shows 40% of Millennials Do Not Prioritize Saving for their Retirement!
Most millennials today are enjoying their lives by eating out at fancy restaurants, buying their favorite expensive high-end gadgets or traveling...February 21, 2019
Watch Out for These Hidden Retirement Fees and How to Avoid Paying Them!
Most financial advisors advise their clients to save and build their retirement fund while they’re still young. Our retirement funds serve...February 21, 2019
How to Deal With Rising Insurance Costs
Most financial experts will advise the young workers to start saving early. If you save early, you’ll have more time, freedom,...February 21, 2019