MY LENDER SAID NO!
February 28th, 2009 categories: Buying
According to the Mortgage Bankers Association about half of all mortgage applications are being denied now. Don’t curl up in a corner and suck your thumb–there are some things you can do that might result in getting the loan.
- First step is find out WHY. According to federal law, if you make a formal application, you are entitled to a formal rejection–an adverse action norice. This notice should give you the reasons why you were turned down. If it isn’t the value of the home, your debt load or your work history might be the reason. If it is your credit, the adverse action notice should name the credit reporting agency that provided the data for the lender’s decision. This is according to Federal Trade Commission rules.
- Fix it. You may be able to borrow the money at a higher rate or by paying points. If you need to reach your desired monthly payment, you may need a certain rate, especially if you are refinancing. If you are not far from the qualifying mark, try reapplying–you may be approved.
- Try other lenders–one lender may approve what another denied. Try a small bank–they may be more flexible. A credit union is another good option.
- Try, try again. The Mortgage Bankers Association is predicting that 30-year fixed loans will be near the 5 percent range in 2009. If that is the case, you have time to try again.
Please feel free to call me at 312-981-2360 if you have questions.
Related Articles: Must Haves for a Mortgage Application, 2-09; Home Affordability and Mortgage Rates, 2-09
This entry was posted on Saturday, February 28th, 2009 at 2:16 pm and is filed under Buying. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
