It is natural to feel lost if your loan application is declined by the banks. However, it may make you feel better to know that you are not alone and many people find their mortgage applications rejected at various stages of their mortgage process. Does a rejected application mean that you will never be able to borrow? The short answer is: No! Even though your loan application may have gotten rejected by one lender, it doesn’t mean that you stand no chance of getting your mortgage approved. In fact, understanding the reasons for your rejection is a great way to work towards a mortgage approval for the next time. If your loan application just got declined, it may be a perfect time to speak to your mortgage broker so you understand the reason for the rejection. There are a few obvious reasons why your application may be declined. Read below to find out the biggest reasons why your application was denied and how to work towards getting a mortgage approval.
One of the biggest reasons for a mortgage rejection is bad credit. If you have a bad credit score, it may be time for you to set the record straight. Start building your credit history. Always pay your bills on time. If your credit score it below 600, work on building good credit by paying your bills on time, and paying more than the minimum amount. Heads up, it takes about six months to rebuild poor credit, so start working on it now!
Too much debt
If you’re carrying a lot of debt, go to a debt consolidator and have your debt managed. Make debt repayment a priority. This will help to improve your credit score as well. Once you’ve paid down your debt and your credit score has improved, apply again through Burnaby’s best mortgage broker. If you pay off debt as much as you can before you start shopping for a mortgage, it will greatly improve your chances of a mortgage approval.
Consider student debt
If you are a student paying for your education and looking to buy a home, it doesn’t mean you won’t be approved for a mortgage. With proper student debt management and debt consolidation, getting a mortgage is possible. Get in touch with Lending experts today for your personal student debt and mortgage consultation.
Rather than get disheartened about your bank rejection, shop around and look for a mortgage broker who will review your unique financial and credit situation and find a mortgage that best suits your needs, at the best mortgage rate possible.
Get in touch with Lending Experts today for all your mortgage queries and concerns. We’ll provide you with debt counselling and mortgage expertise so you can purchase your property in Vancouver, or Maple Ridge, or Surrey, or wherever your dream home may be!