A mortgage is often needed to purchase a home. For some home buyers, however, it can be difficult to get a mortgage. Banks and other lenders/brokers often hesitate to lend money to certain customers, sometimes for good reasons.
Sometimes, however, the reasons lenders/brokers give for your denial are not always valid. If you have been denied for a mortgage, don’t give up on trying to get funds. These are the three things that could influence your chances of getting approved on your second attempt.
Your Situations Might Be Changed by a Second Appraisal
Sometimes, a Beverly Hills Mortgage Broker may deny you a loan because the property’s value isn’t high enough to support the loan. A second appraisal may be helpful if your mortgage lender denies you a loan due to a low loan-to-value ratio. Many appraisal companies will provide completely different appraisals for the same property. Some brokers report valuation differences as high as $1.3 million.
Keep in mind that two appraisals cannot be obtained through the same lender. If you want to have your home appraised again, you will need to find another lender/broker.
Cleaning Up Your Credit Report Can Work Wonders
Your credit report can play a significant role in whether you are approved for the mortgage you desire. You should take all steps to rectify any credit reports that have led to your denial. You can restore your credit score by calling your creditor to ask them to remove any negative entries.
Also, you’ll want to pay any past due balances as quickly as possible. You can negotiate with your creditor to make a partial payment if you are unable to pay the entire amount. This will make the debt appear on your credit report as “paid according to agreement”, which will improve your credit score.
A good idea is to make an extra down payment.
Beverly Hills Mortgage Brokers may decline to lend money to borrowers who ask for too much. You will likely be denied if you are pursuing a mortgage that is more than 95% of your property’s value. However, if you make a larger down payment, your loan amount can be reduced. This may encourage your lender to approve you application.
Don’t lose heart if you have been denied for a mortgage. There are steps that you can take to get approved, as you can see.