What To Do After A Mortgage Loan Rejection

by David Iseman 10/20/2019

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

David Iseman

David Iseman's focus is helping people who want to invest in or sell real estate on beautiful Cape Cod, Massachusetts, USA, a saltwater peninsula 75 miles south of Boston, MA. This world-famous vacation destination is known for its fresh salt air, beautiful ocean beaches, quaint New England villages, picturesque country lanes, golf courses, boating, fishing, restaurants, and proximity to the islands of Martha's Vineyard and Nantucket.

David is a native New Yorker, born and raised in Manhattan, has been on Cape Cod since the mid 80s, and served on the committees for the Falmouth Fourth of July Fireworks, the annual Falmouth Holiday Parade, and volunteers at The Woods Hole Theater Company.

On the radio, David has been heard as the Afternoon On-Air Personality at Boston's Kiss 108,and Magic 106.7; Creative Director at WXTK & WCOD, Hyannis, MA; Program Manager/Afternoon host at Cape & Islands Oldies 96, and Cape Cod's Lite (now Cool) 102.

As an actor, he can been seen on-screen in True Lies starring Arnold Schwarzenegger, and as member of the Falmouth Theater Guild, he appeared in Irving Berlin's White Christmas. At the Showcase Playhouse in Sunapee, NH: Oklahoma!, Brigadoon, Born Yesterday, Mame, Finian's Rainbow; Newton Theater Company: Applause.

David is a full-time Realtor offering Competent and Compassionate Service since 1998, specializing in premium properties, waterfront homes, and land on Cape Cod, MA, and internationally through Sotheby's International Realty's extensive network of like-minded real estate professionals. David holds a Massachusetts Real Estate Broker's License and, to serve you more effectively, has earned these designations: Accredited Buyer Representative, Seniors Real Estate Representative (SRES), and the e-PRO certification from the National Association of Realtors which teaches how to effectively use technology to help our clients.

David looks forward to being of service and helping you avail yourself of the extensive resources at Sotheby’s International Realty.