Monday, March 23, 2009

Read this if your mortgage application has been rejected

Sad and frustrated that your mortgage application got rejected?? Don’t worry, as per Mortgage Bankers Association around half of the mortgage applicants are turned down by banks and financial institutions. This means you are not alone and it is not the end of the road too.

Consider some of these points below which could help you in securing a loan:

• In case you don’t get approval for mortgage at a lower rate chances are that the financial institution could give you a nod at higher rate of interest or lower mortgage amount.
• If you are just miles away from the eligibility criteria i.e. credit score, you could reapply and get an approval if you are willing to pay the balance on your credit card.
• In case one financial institution rejects you try your hands at the other one. There is a very good chance that the other one may give you the nod. For eg. A local community bank might be flexible in its terms and conditions as compared to a bigger financial institution following stringent norms.
• Keep in mind that a rejection does not lower your credit score but reapplying within a month could lower your credit score by five points

So stay calm and don’t lose hope if your mortgage application gets rejected 

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