Refused A Mortgage? Here Are Your Next Steps
Owning a home, whether it’s your main residence or vacation property, is at the top of everybody’s wish list. Stepping onto the property ladder is a big leap in the right direction as once you’re a homeowner, you have a lucrative asset that you can leverage in more ways than one.
Sadly, 32% of applicants with less than perfect credit are rejected by lenders. If you fall into this category, you’re almost certainly trying to calculate the next steps. Yes, it’s a tough time and your emotions are all over the place, yet it’s not over.
Here’s what you must do to make your dreams come true.
Apply With Care
A ‘mortgage in principle’ isn’t something that you should take for granted. It by no means should encourage you to stop searching for loans or backup plans. Nothing is guaranteed and the bank can pull out at any time, and they will if they find new information or data that doesn’t add up. Typically, this occurs when you haven’t applied with care and attention, also known as guessing questions and not writing down the most accurate info. Making a mistake is a stumbling block, so if you’re unsure, don’t rush. Instead, call the bank or an expert and ask for assistance.
Find Out Why You Were Refused
Of course, the reason that you assume is behind the rejection could not be a problem at all. In that case, it’s something else that the lender doesn’t like or believes is a risk, which is discomforting. The only way to discover why you were refused a loan is to ask for a detailed breakdown. Once you have the insight, you can do your best to ensure it isn’t an issue when you reapply or file an application with another bank.
Don’t Focus On The Best Rate
“Best” is a subjective term. What’s necessary and appropriate for one lender might not translate to another. Therefore, what you require is a tailored package. The best home mortgage lenders always tweak their services based on the individual or couple. Firstly, it increases the chances of securing a loan. Secondly, it prevents you from asking for needless features, such as too much money. Providers will reject your application for the simple fact they don’t believe you’ll keep up with the payments, so you should ask for the amount you need to the penny.
Spread Your Money
Speaking of being unable to afford the repayments, the best way to highlight that you are trustworthy is to stretch your resources further. Usually, this means lowering your debts or increasing your earning power, but both are very difficult. Thankfully, home equity loans can enable you to pay for a huge expense in one go. Why? It’s because the rates are fixed. You can use it to consolidate your arrears, too. You can learn more about how this type of loan works by clicking on the link.
Have you been refused a mortgage? If you have, please utilize these pointers to boost your chances when you reapply.