What Do I Do If My Home Loan Application Is Rejected?

Home Loan Application

Sometimes, when we do not meet the requirements, our friendly lender or home loan agent will politely usher us out of the door. Don't think it is personal. If you had submitted a formal application and got a formal rejection, it is most likely that your appraised loan value is too small with your applied loan or need. Often times, your credit history, total debts, and work history affects the way the lender sees your future payment performance. It is always best to have an honest discussion with your lender about the reasons your application was rejected.

Income and credit guidelines

Each lending and banking institution has its own preset income structure and credit guidelines. If you have declared bankruptcy or had a bad credit history, you need to wait a few years to get a good credit rating again. This means your pocket needs time to be healed. Banks most likely will put you in a quarantine mode until you get cured of poverty. The highest number of years is 7. However, some banks are more forgiving and may extend some loan after 5 years.

Poor credit or late payments

To heal your credit history, you need to pay your credit card bills on time even if you only pay the minimum payment of your bill. Bad credit starts even if you get delayed in paying your credit card for at least 2 weeks. The technique is to pay the minimum on time and then just pay additional when you have more money. It is very important that you pay on or before the due date. If credit repair is not possible in the least number of months, you may want to check out another loan sites or contact a home loan mortgage agent. Payments and late repayments are being recorded by the Credit Bureau and are made available to credit providers. Your past repayment or credit history is an important indicator of future behavior.

Appraised value of property

This is very much related to the location of the property you desire to purchase. The resale value is very much affected by the location and market valuation of your property. Any factors affecting the value of your property may result in loan rejection such as your house sitting on a red district or a dilapidated building. A location that may be affected by a future planning is not likely to get approved.

Financial information and verification of deposit showing inadequate funds

If you have a very low deposit or inadequate funding, the lender or bank may not be confident in extending credit. They may require a guarantor to help with the approval. Another tric k is combined incomes with someone who is working such as your wife or a close relative. The aim is to show the bank that you have the ability to make prompt payments. An insufficient income will give you a hard time qualifying for any loan. You need to update your bank accounts and show enough funds.

We are a Home Loan Mortgage and Home Loan Application consultancy firm offering free expert advice on compare home loan mortgage financing packages using the most advanced loan analysis system.

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