Mortgage Loan Rejection: What Next?

by Alan Blackie 11/17/2019

Having your home loan rejected can be disappointing, but it is not the end of the road. This article is full of ideas to help get your loan approved on your next try:

Re-edit your borrower profile

Banks are vigilant on all aspects of credit, including the profile of the borrower. Remember that many criteria are crippling. Any episode of overdraft is out of the question and better pay off consumer credit. Be sure to review and resolve any errors on your credit report.

Call a broker 

These intermediaries compete with borrowers. They refine your file and present it to the right banks since they know the criteria and the commercial policy of all its financial partners. Then the borrower has to choose the best offer. In most cases, the broker will get a small commission for obtaining the loan on your behalf. 

Increase your contribution

Check if you can increase this. That way, the bank will be more reassured, mainly as you will borrow less or assure them of a shorter repayment period. How do you improve your contribution? You can resort to family donations, for example, unlock the profit sharing of your company. Another possibility: use the loans constituting personal contribution like the Housing Action Loan (formerly 1% housing), home savings. 

Consult other banks to borrow

Did a financial institution refuse the loan? It does not mean that another bank will not accept it. It will be challenging to resubmit the file to the same bank, but other banks will take it. The conditions for granting credits vary from one institution to another. Some are more aggressive commercially and are more flexible. Others offer innovative formulas that increase real estates purchasing power, such as mixed loans and tiered loans.

If for some of the reasons chipped in above, your loan application does not get approved, you should rebuild it. For a loan application to be accepted, the banks ask for the last three statements of account. They must show that the borrower is reasonable and can repay. It's better to clean them to present a reassuring profile to the lending institution.

The opening of a savings account can be the right choice: it allows you to show that you can save money. Do not go at the last moment. Banks will appreciate your long-term savings efforts.

Remember to heal your reputation online: the profile you present on the networks can always serve as your service. With the above tips, you are sure to get yourself the required loan you need next time you apply.

About the Author
Author

Alan Blackie

Personal My personal credo is simple: Treat others as you would wish to be treated. I also carry this into my business life. As a result you can expect me to work with you to maximize the value of the time we spend together and the price finally agreed in our transaction. I will talk with you not to you. I will answer your call or communication in a prompt and courteous fashion. I will exercise unerring commitment to service while, showing empathy with your needs and goals. A Norwalk resident since 2002. Education Educated in England to HNC in Electro-Mechanical Engineering Therfield County Secondary School: Surrey to GCSE, A Level Carshalton College Surrey: Electro-Mechanical Engineering to HNC. Dale Carnegie London UK: Effective Communications & Human Relations/Skills for Success. Professional Association Member of New Canaan Multiple Listing Service. Member of Greater Fairfield County Multiple Listing Service. Mid-Fairfield County Board of Realtors - Member. Connecticut Association of Realtors - Member. National Association of Realtors - Member. Community Involvement Person to Person Open Door Shelter Norwalk Land Trust - If you are actively looking to buy homes or sell property in the Coastal Fairfield County area, feel free to call me at (203) 219-9510, 8.00am through 8.00pm EST alternatively email or text anytime. Residential Sales, Residential Listings, Exceptional Properties, First Time Home Buyers, Corporate Relocations, New Construction, Investors. Areas Covered: Coastal Fairfield County including but not limited to - Norwalk, Rowayton, Stamford, Trumbull, Fairfield, Westport, Wilton, Weston Thanks for stopping by. Feel free to reach out with any real estate related questions or requirements that you may have. Licensed in CT #RES 0765024