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What If My
Application Gets Rejected?
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In addition to
having your application rejected outright, you
may find that the loan you are ultimately
approved for may not be the one you initially
applied for, or the lender may attach
stipulations prior to your approval, or you may
be offered a counter offer.
What to do if
your loan gets rejected.
-
If your
loan is denied, the lender is required to
provide in writing a detailed explanation of
why your loan was rejected within 30 days of
your completed application submission. The
notice will also include information about
federal agencies that you can contact if you
believe you have been illegally
discriminated against.
-
If your
loan was denied because of excessive
debt or
a tarnished credit history, focus on getting
yourself out of debt and you can apply again
once your financial situation improves.
-
If a poor
credit history was indeed the reason your
loan was rejected, you are entitled to a
free copy of your credit report. If you find
any reason to dispute any of the
information, the credit agency who compiled
your report is required to investigate your
claim free of charge and notify you of the
results of their investigation. To save
yourself time, obtain a credit report prior
to applying for your loan and go over it to
make sure it is accurate and up-to-date, and
resolve any discrepancies beforehand.
-
Request a
second opinion from your lender.
-
Shop
around. Different lenders will have
different criteria for making a loan, and by
shopping around; you will increase your
chances of finding one that will suit your
needs.
-
Consult a
mortgage broker. If after shopping around on
your own, you still find yourself being
continually rejected, perhaps you are
looking in the wrong places. A good mortgage
broker may be able to put you in touch with
a lender you were not aware of and who may
be willing to approve you.
Mortgage Glossary3
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