If your mortgage application has been denied, you don’t have to give up on your home ownership dreams. There are steps you can take to improve your ability to get approved for a loan.
First, it is crucial to get in contact with your lender. There are a multitude of reasons as to why an application can be denied. Learning why your application was denied will give you the chance to resolve any issues.
Let’s go over some common reasons an application may be denied.
There is a minimum credit score that borrowers will need to meet in order to receive a home loan. If your credit score does not meet the minimum requirement, your application could be denied, but you can work to improve your score. Although it takes time to improve a credit score, the benefit is worth the effort.
To maintain a good credit score, be sure to always pay your bills on time. Also, try to pay down debt to reduce your debt to income ratio. It is also best for your card balance to be low in relation to your credit limit. Even if you no longer use an account, do not close it, because your credit score is also affected by how long your accounts have been open. You should also limit credit inquiries and opening new credit lines; too many in a short period of time can lower your score.
There are certain employment requirements that borrowers will need to meet when applying for a home loan. It is favorable to have consistent employment; any gaps in your job history will be considered. Check to see if your income meets the minimum amount required for the loan you are applying for. Make sure that all of your income has been accounted for, including freelance, investment accounts, inheritances, and savings accounts.
Carefully look over your loan application paperwork. Be careful that the information you provided is complete and correct. Ensure that you have provided all required documents. Missing or incorrect information can be a reason for a denied application.
Don’t Give Up!
It may take some time, but it is possible to come back from a denied mortgage application as a stronger applicant. At Benchmark, we take our job of helping you secure the dream of homeownership seriously. Even if you are not approved, you will be armed with the knowledge to do something about it courtesy of your Benchmark loan officer.
If you are serious about getting approved for a mortgage, contact us: we are here to help.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.
Benchmark brings you home.