Sometimes, home buyers get carried away by the excitement and anxiety to own a home and resolve to provide untruthful information. For others, it might be something to do with credit history. Or still, fall victims of common mortgage mistakes. Well, the fact that your home loan application has been turned down doesn’t mean all is lost. Here’s what you should do once you find yourself in such a situation.
1. Evaluate your situation.
Refinance mortgage lenders in Utah like Altius Mortgage Group will be happy to provide clients with answers for loan denial. Therefore, you have a golden opportunity to get to the bottom of your situation. Seek to find out the main reason. Ask to know how long you should wait before making a re-application. This helps you also know the mistakes you made and work on your weaknesses.
2. Take some time before re-applying.
Take some time off and counter check your loan documents. Analyze where you went wrong and correct errors. Look at things from a lender’s perception and see some of the red flags that might take you back to a similar situation. This way, you get to save yourself some stress and frustration. Besides, decisions made out of a sober mind are always more upright and informed.
3. Make a large down payment but apply for a low figure.
Lenders find it less risky to give out a much lower figure. At times, they will even give without paying much attention to your credit score. However, for an individual who’s re-applying a home loan, it’s imperative that you pay a more substantial down payment and borrow less. This way, you don’t just benefit from a quick approval, but also find it cheap to repay.
Lenders are also out to make profits. And it doesn’t make any business sense for them to risk their money. With lending rules and regulations tighter than ever, whatever you write on your application form may or may not jeopardize your mortgage process.