What to Do When Your Mortgage Loan is Declined
Mortgage loans are declined on a very regular basis, however much more commonly the mortgage lender will put conditions on the mortgage which in no case can possibly be met, causing the consumer to be unable to accept the loan. For example, the underwriter could ask you for some documentation showing that you have more income than you actually make. Quite often a mortgage underwriter will find that you have a debt that was not on any of your credit reports and that you neglected to mention to the loan officer. Another cause of this would be that the home’s appraisal was less than the borrower had anticipated, making the loan more expensive to give out. It happens on quite a regular basis, sometimes there are things that you can do to take care of the situation, but other times the situation is out of your control.
When this happens, more often than not the lender will offer you a less desirable loan. You might see a slightly higher interest rate, a few extra points, or some extra fees. They will tell you that the loan is not that much more expensive. This has become a very effective ways for loan offers to bait and switch people into less desirable loans. In many cases, your loan has not actually been rejected, and instead they just want to stick you with a less desirable loan. However there is no way to tell if your loan has actually been rejected, or if they are merely trying to bait and switch you.
Now it is time to take some action. Since you simply cannot meet the guidelines for the loan, it is best to shop around mortgage companies again. As far as you should be concerned, the loan that you signed up for doesn’t exists. So go back to all the companies with the amended information and see what the best loan that you can get is. If a loan is declined, then Apply Online in Minutes for Your Fast Cash Loan requirements. The amount will be available according to the requirements of the person and less interest rate. A comparison can be made in different companies to get the desired amount. The availability of the best loan will be there.
When you do o back and begin shopping again, you have to be very careful to not accidentally pay for two appraisals. Many lenders will want two on-site appraisals to protect their interests, but you shouldn’t deal with these people. High quality loan providers fully intend to give you the loan they are talking about without messing you around by asking for two appraisals. You should be able to use the same appraisal, and just pay a re-typing fee of approximately $100 without having for fork over all the money for a new appraisal.
Having your loan rejected can be quite an un-nerving event, but it is not the end of the world. There are always other options, and be sure that you find the best one for you.