What To Do After Your Mortgage Loan Is Rejected?

by Arne DeWitt Group 09/29/2019

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

Arne DeWitt Group

There are a lot of real estate agents serving the South County real estate market, but few with the longevity, experience and professionalism of Arne DeWitt.

Arne graduated from California State University, Northridge with a BS degree in Business Administration and soon put his business skills to work in his real estate career with RE/MAX that now spans more than 30 years.

During his career Arne has listed and sold more than 1500 homes, resulting in 750 million in sales and garnering every production award given to top producing RE/MAX agents – including the prestigious Chairman’s Club, Hall of Fame and Lifetime Achievement Awards.

Never one to rest on his laurels, Arne has continued to hone his professionalism and knowledge. Throughout his illustrious career he has earned several esteemed professional real estate designations such as GRI (Graduate REALTOR Institute), CRS (Certified Residential Specialist) and ERC (Employee Relocation Council)

But it’s not the awards and industry accolades that fuel his passion – it’s a genuine desire to help his clients achieve their real estate goals and dreams. Arne is most proud of the high percentage of referrals and repeat business he receives from satisfied clients who shower him with thank-you letters with comments such as:

“You made the selling of our home a pleasurable experience. You should clone this guy!” and “Arne did everything he said he would do and more!”Arne Dewitt

When not working as your community relocation specialist, Arne likes to unwind by participating in sports such as golf, fishing, and hockey. He also enjoys coaching boys’ sports and spending time with his sons, Wesley and Matthew. Arne is active in his church and donates time and income to individual charities.