Have You Been Turned Down for a Mortgage?

One of the most frustrating things that can happen to you in the mortgage process is actually being turned down for a mortgage. This happens, and when it does it is not something that is very pleasant. In order to get home mortgage refinance you must actually have a mortgage in the first place! The following are some things you can do if you get turned down for a mortgage.

Know What Happened

If a lender denies you a mortgage, they then have 30 days after your application date in order to let you know why they denied your loan. This will be called an adverse action notice, and must have the specific reason why you were denied. On average these are the following three most common reasons why a mortgage has been denied: high debt troubles, bad credit history, and lack of a down payment. Luckily those three can be corrected.

Maybe a Second Opinion is Needed

It is possible that you can have the mortgage lender review your case. If so, then you should take advantage of it. You can then make your case to them on why you should actually be allowed to get this mortgage. Do your best to convince them that you should be eligible. You may have had some unforeseen expenses arise recently. Let them know about this and that you have had no trouble paying them off. Now you can be in a good position for a down payment.

Continue the Shopping

Do not give up! You must continue shopping for a mortgage, because it is too important. One lender may have turned you down, but not everyone will! You must find the lender that truly wants your business. There is no common lender grading system and everyone will do if differently. Go out and find that one that is right for you. It is out there. You just have to put in the time and effort.

Here are some questions you should ask your lender.