How To Move Forward After Denial
Getting the stamp of denial across your mortgage paperwork might feel like something straight out of a nightmare. Unfortunately, for many potential home buyers that nightmare becomes a reality in the waking world. Fortunately, even if you are denied for a mortgage you can keep shopping for a home—and another mortgage option. To help you move forward, we would like to offer these steps.
- Find Out Why: Within thirty days of your application date, your would-be lender is required to offer you a written explanation of why your loan was denied. Called an adverse action notice, this explanation will give you a definite reason as to why you were denied. Knowing this will help you figure out in which area you need to put work in order to become attractive to other lenders.
- Go Deeper: Some lenders will give you the option of a second review for your mortgage application. If you can show that secondary loan reviewer that the reason for your denial was an isolated circumstance (e.g. unforeseen medical bills running up your credit card debt), you may still be able to get your loan approved.
- Look Around: Different lenders will have different underwriting criteria. Do not assume that a denial from one lender will mean denial from all lenders. Keep shopping around until you find a lender who will work with you to get the loan you need.
A mortgage expert can help you bounce back from a denial or, better yet, ensure you never get denied in the first place. To work with a staff dedicated to helping you get the California home loan you need, contact the Ranch & Coast Mortgage Group Inc. in Solana Beach. We are here to help you get approved for the right mortgage so you can get into the right house.
