Some individuals who apply for a mortgage worry about the possibility of being turned down for a mortgage.
Mortgage lenders can ordinarily adjust the loan terms in many ways in order to aid you in qualifying for a mortgage.
However, if you are refused, there are some measures you should take:
- Ask the mortgage lender for an explanation. By law they must inform you, in writing, just why your mortgage application was denied within 30 days.
The biggest reasons given are inadequate down payment, poor credit rating, length of employment and too much debt. Every Last one of these can be rectified with time.
- Ask for a superior to review the decision. It’s feasible you may still qualify if you can convince the reviewer your credit was damaged by an lone and unpredictable incident such as a major illness in the family.
- If the 1st mortgage lender still refuses your loan application, go to a new mortgage lender.
Just because 1 lender feels you don’t qualify for a mortgage doesn’t mean they will all turn you down.
The mortgage companies around function under unique guidelines, and while you may be paying higher interest rates, you should be able to find someone ready to give you a mortgage.