It is important to understand the reasons you were turned down for your loan. You are entitled to get a free copy of your credit report if you have been turned down for a loan. Review your credit report with a reputable mortgage professional with access to many different programs.
When your lender says no, don't give up on refinancing. Just because you don't fit into a specific lender's available loan programs doesn't mean that you can't qualify to refinance, take cash out, consolidate debt, or otherwise improve your financial situation. There are thousands of different loan programs available across the country, and chances are that we can qualify for one which will help you meet your goals, even if your current lender cannot. Contact us at 301.536.2875 for more information on how we can help turn "NO" into "SUCCESS" for your family.
If you cooperate with your broker without getting anxious or disappointed, the good broker will guide you to obtain the financing you need to purchase your dream home.
You should always get a second opinion from a different lender or mortgage broker. There are plenty of lenders out there may have the program that best suits your needs.
Was your loan denied due to bad credit? If so, be sure to carefully examine your credit report for errors or duplications. There are steps you can take to have the errors removed and increase your score. After errors are corrected you should consider paying down some debts. Start with the accounts that are closest to being maxed out as this is a high risk indicator to the credit bureaus. Requesting a higher credit limit on credit cards can also reduce your percentage of used credit. As every one's situation is different, be sure to ask your loan officer for any tips on building a strong credit report.
Most brokers are approved with 100's of lenders and still have plenty of options for you if the first lender says no. Think of it like this:
A true mortgage professional is going to try to get you in the absolutely best loan you "might" qualify for. Just because you don't qualify for your first choice doesn't mean that there isn't a great loan that would benefit your current situation.
Even though a bank may have turned you down for a mortgage loan, a mortgage broker may very well be able to get you approved with another lending institution. There are many programs out there specifically designed for customers with past credit problems, low available down payment funds, or other issues. While these programs often come with a higher interest rate, they are still worth considering. In many cases, you can get into your home, pay your mortgage on time for a year or so, then look into a refinance. By this time, your credit score will have increased significantly, and your mortgage broker will be able to offer you a new mortgage with much better interest rates.
Improving the quality of your credit will help a great deal in getting approved for a home loan.
A good quality mortgage broker will be able to help you work through the issues and tell you exactly what needs to be done in order to qualify for a future loan.
Your mortgage broker may also try another lender if your loan is denied. There are many lenders with many different programs on the market today. Flexibility is where a mortgage broker's strong point is over a bank. Your mortgage broker can search through many different sources to find a lender who will possibly fund your loan.
If you have certain conditions that hinder your ability to get a mortgage, you may want to consult a mortgage broker. Many brokers have access to loan programs that are created to help home buyers with certain common finance blemish.
The most important thing is to Never Give Up! Work with your loan professional on steps to make home ownership a reality.