Getting pre-approved for a mortgage loan is an integral part of having the ability to purchase a home
in today’s society.
With most home prices well above what the majority of us have in the
bank, getting approved for a mortgage can be the deal maker or breaker
when it comes to purchasing a piece of property. Therefore, getting
rejected for a mortgage can feel like a huge loss.
The first thing to realize, however, is that there are action steps
you can take to get to “yes.” Here’s what to do if you’re turned down
for a mortgage or other home financing.
Shop Around: Don’t Take “No” The First Time
If you get a “no” from your bank the first time around, don’t be
fooled into thinking that everyone will give you the same answer.
Instead, be sure to shop around your mortgage with different banks,
and opt to speak to a mortgage broker to leverage all of your options.
When looking at several different lenders, you’ll have a much higher
chance of getting a yes since every lender adheres to different rules
and restrictions. Though you may end up with a mortgage with a slightly
higher interest rate, you’re likely to get approved for a mortgage or
other home financing.
Ask Friends: Get A Co-Signer
If your “no” was the result of bad credit history or a low credit
score, perhaps you should consider asking for the help of friends and
family. Sometimes bringing a co-signer in on the deal who has better
credit history and a higher credit score will change the response of
your bank or lender significantly, and suddenly you’ll find yourself
hearing the sought-after “y” word.
Ask Questions: Fix The Problem
If you’ve sought out several different banks and lenders, and still
find yourself with rejected mortgage applications, be sure to understand
why the “no” came in the first place. If it’s an issue of your credit
history, which can’t be appeased with a co-signer, you may need to put
in the time in order to correct some of your credit issues.
Other common reasons why people are rejected for a mortgage include
unrealistic borrowing expectations, i.e. applying for a mortgage that is
too high for you to satisfy, as well as an unreliable employment
history or a general lack of credit history. Speak with your mortgage
professional to determine the reason, and if shopping around or bringing
in a co-signor doesn’t transform the “no” to a “yes,” seek to fix the
Though it can be a daunting task to apply for a mortgage after you’ve
been rejected, ensuring that you arrive at that ultimate “yes” is
something you need to undertake in order to purchase a home and reach
that next milestone in your life.
Having trusted professionals on your side is something that will
surely ease the tension on all things involved in purchasing a home,
including getting approved for a mortgage. For more information on how
to get past “no” when searching for a home, call your trusted mortgage