Getting Turned Down for a Loan Doesn’t Have to be the End of Your Dream
There’s a lot of good advice (and some not-so-good advice) out there about what you should do before you apply for a mortgage. And sure, we appreciate your doing your homework, and your legwork, before you sit down with one of our licensed loan officers.
But here’s the downside of all that advice — it makes it sound like not getting being approved would be the modern day version of the village stocks. According to a national survey of prospective home buyers performed in early 2014, more than half of the respondents reported that they hadn’t even applied for a mortgage because they were afraid they wouldn’t qualify.
The reality is that being rejected isn’t the end of the world, or even the end of your dream. We are often able to finance people who have been turned down elsewhere. Plus, as cited in that same report, approval rates improved slightly in 2014 and as of second quarter 2015 the mortgage requirements haven’t gotten tighter in more than a year. So for many of those fearful home buyers, what’s standing between them and their next home is just old news.
They say that knowledge is power — we didn’t make that up, but we certainly agree.
Which means that the best time to talk to your loan officer is when you’re uncertain if you’re going to qualify for the house you want. We can help you get clear on what isn’t going to be a barrier, and create a plan for dealing with anything that really is in the way. Since we offer in-house financing, we can close your loan in eight days. But, if not everything is perfectly in order we’re your best advocate even if it takes months to put you in the position to be approved for your loan.
Once you have the knowledge of what you need to change you have the power to make those changes. And no article on the internet, no matter how qualified the author, can look at your personal situation and tell you what is going to be true for you.
There are no hard and fast rules for what you need to be approved. You may not need as much down as you think, your credit score may not be as low are you fear, and managing your credit to maximize your changes doesn’t mean you need to pay everything off, some debts have more impact than others. And that’s not even taking into account the special finance options like FHA that you might qualify for.
If you’ve been thinking that your dream home is still out of reach, or if the possibility of being rejected has you afraid of even having a conversation with an expert, let us help.
You can apply on line quickly and easily or give us a call.
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