What to do if You're Denied a Home Loan - Mortgage Moment

Описание: If you hear the words, "Your loan has been denied," does it mean you're out of the game? Not necessarily. There are a couple of avenues you should explore before you give up on buying a home. First, you need to know that the lender is required by law to tell you in writing exactly why your loan application was denied. If you don't understand what the lender tells you, keep asking questions until you do. If your loan was turned down because of something in your financial documentation, something as simple as a letter of explanation to the lender could clear up the problem. You could decide to appeal the decision to deny your loan by offering the lender a counter-proposal. For example, let's say that your credit history was bad on several occasions, and the lender has denied you a loan for 80% of the price of the home. The same lender might approve a loan for 75% of the purchase price. If you don't have the additional five percent cash for the down payment, a second lien is one way to go. It's a popular option that allows the seller to assist you with your down payment. If you can't work things out with your original lender, you might still be able to find a lender who will approve your loan, if you're willing to pay a higher interest rate or loan origination fees. Did you know that you could get turned down for a loan through no fault of your own? The problem could be a low property appraisal. If the property doesn't appraise for the amount you're borrowing, you can't get the loan. If the property won't appraise for what you've offered, you might be able to get out of the contract without losing your deposit. If the appraisal comes in low, ask the seller to consider renegotiating the price. An appraisal might come in too low because it is based on sales of properties that don't truly compare to the property you wanna buy. Ask your lender to give you the addresses of the homes that were used to arrive at the appraised value. Then consult with a real estate agent who really knows the area. Ask the agent to give you three comps, or comparison properties, that are a better indication of the property value and ask your lender to consider these properties instead. If that doesn't work, you could always take your loan package to another lender. Remember, if your loan is denied and you can't seem to make it work any other way, you're simply being told, "Not now." Take care of whatever is standing between you and your new home, then try again.