Has your mortgage approval been denied by the bank? Don’t fret! Not everyone gets approved for their mortgage loan the first time they submit a request. Even if you already have a mortgage and are looking to refinance, there’s always the potential that the bank will deny your application. Fortunately, there are ways to fix this. Here we’ll discuss your options for when the bank declines your loan request.
Check Your Credit Report
Errors on your credit report can prevent you from getting a mortgage loan. So it’s a good idea to check your credit report to see if there are any mistakes, like closed accounts that appear open or late and inaccurate payments. Credit at or over limit can affect your score as well as late payments and collections. If you find anything alarming, you will need to contact the credit bureau to fix the issue or work towards improving your credit.
Before you throw in the towel, ask the lending institution to explain why they refused your request. If it’s because your debt load is too high, we can help with a plan to restructure or pay off your debt. Options like debt consolidation and lines of credit can help you pay off your high-interest debt instruments and provide you with a lower interest rate, lowering your monthly debt load and get you ready for homeownership.
Seek New Financing Options
All because one lender won’t approve you doesn’t mean another one will. You still have the option to shop around for different lenders.
Improve Your Financial Health
If you have received a rejection from a lending institution, you might need to fix your financial health first before applying to others. This may include increasing your credit score, foregoing the annual vacation to pay down debt, or saving more over time.
Call a Mortgage Broker
Sometimes you need an industry professional to help you sort everything out. Our team at the Mortgage Advisors can help you get the mortgage that’s right for you. Because we’re a Mortgage Brokerage and do not work for any one institution, we can provide you with a number of options that are right for you. If you’ve been rejected, we can help you explore flexible options and help you navigate all the various requirements necessary for setting up the mortgage loan. No matter what your current financial situation is, we’ll work with you to understand your mortgage needs and get you a loan that’s right for your situation.
The Mortgage Advisors are Ontario’s trusted mortgage brokers. If the bank declines your loan request, contact us, and we’ll help you get back on track with our expert advice and guidance.