JCProperties

  • About
    • Yelp Reviews
  • Buying
    • Apply Online
  • Selling
  • Staging
  • Listings
  • Blog
  • Contact
  • Email
  • Facebook
  • LinkedIn

Have You Been Denied for a Mortgage? Here Are 3 Reasons Why You’ll Want to Keep Trying

January 14, 2016 by JC Leave a Comment

Have You Been Denied for a Mortgage? Here Are 3 Reasons Why You'll Want to Keep TryingIf you’re in the market for a new home, you’ll most likely need a mortgage in order to afford it. But for some home buyers, getting a mortgage isn’t easy. Banks and other lenders are often hesitant to lend money to certain consumers, often for good reason.

But sometimes, lenders’ reasons for declining you aren’t entirely valid. That’s why, if you’ve been denied for a mortgage, you’ll want to keep trying to get mortgage funds. Here are three factors that can influence the likelihood of approval on the second try.

A Second Appraisal Might Change Your Circumstances

Sometimes, a mortgage lender will deny a loan because the property value of the home in question isn’t large enough to back the loan. If your mortgage lender declines you because of a poor loan-to-value ratio, getting a second appraisal could help. A lot of appraisal companies will give wildly different appraisals on the same property, with some brokers reporting valuation differences of up to $1.3 million.

Bear in mind that you cannot get two appraisals through the same lender, so if you choose to have the home appraised a second time, you’ll need to find a new lender.

Cleaning Up Your Credit Report Can Work Wonders

What’s on your credit report will have a large role in determining whether or not you get the mortgage you want. If you’ve been denied because of entries on your credit report, you’ll want to take every step possible to correct those report issues. If you’ve been more than 30 days late on a payment in the past, it will show on your credit report and affect your score – but by calling your creditor and asking them to remove the negative, you can bring your credit report back into good standing.

You’ll also want to pay off any and all past due balances as soon as possible. If you can’t pay what you owe in full, you’ll want to negotiate with your creditor to pay part of the amount. This will result in the debt showing on your credit report as “paid as agreed”, which will boost your credit score.

An Extra Down Payment May Be A Good Idea

affect your scoreOftentimes, a lender will decline a borrower if the borrower is asking for too much money. If you’re pursuing a mortgage worth more than 95% of the property value, you’ll probably be declined. But if you make an extra down payment, you can lower your loan amount – which may incline your lender to approve your application.

If you’ve been declined for a mortgage, don’t give up. There are steps you can take to get approved. Call your local mortgage professional for more advice on mortgage applications.

Filed Under: Home Mortgage Tips, Mortgage Preapprovals and Credit, Mortgages

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Free Consultation

Complete the form below to register for a free consultation. Please note that fields marked with an asterisk are required.

About

JC Properties is owned and operated by Josephine W.K. Chu, CFA and is the property marketing arm of JC Financial, an independent real estate and mortgage brokerage.

Her goal is to help buyers realize their dream of home ownership. She believes buyers deserve to have a dedicated advocate to help them navigate the increasingly competitive real estate market and arduous loan process and is able to pass through her lower costs as an independent broker to borrowers.

More About Josephine

Questions?

Call me at (925) 788-3928
or
Email me!




JC Properties is an Equal Housing Opportunity Lender

CA BRE License #01932402
Company NMLS #1062242
Individual NMLS #274689

© 2021 JC Properties · JC Financial · Privacy Statement · All Rights Reserved.