There’s No Rule Against Re-Applying For A Mortgage

Don’t give up if your mortgage application is turned down. You might be very close to an approval. Ways to try again.

Source: There’s No Rule Against Re-Applying For A Mortgage | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

 

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75% of Applicants Are Approved For Their Mortgage!

Michael Nelson - Equity PrimeAccording to Ellie Mae the 75% approval rate is at its highest level in more than a decade. That is obviously great news for those purchasing a home and for those existing homeowners who are taking advantage of the robust refinance market.

What Do The Other 25% Do?

Michael Nelson - Equity Prime

 

Denial of credit is, usually, not permanent.  This is good news.  Loan offers and underwriters analyze many financial factors in every loan file. Automated underwriting systems (AUS), FICO scores, debt to equity ratios, loan to value ratios, and the appraised vale of the home are indicative of a borrowers ability to repay a mortgage.  None of these factors are permanent and all can be improved with good financial planing.

A reputable lender will work with borrowers who are denied credit.  The loan officer must take time to explain the reasons for the denial and offer suggestions for improvement.  For a fee, credit repair companies  provide recommendations for retiring debt that is responsible for the mortgage denial.   Frequently the loan officer will check the AUS findings and make recommendations that will improve FICO scores.

Remember, the financial factors that result in credit denial are not permanent.  Credit can be improved.  In many situations the borrower can improve credit within a month or two – quick enough to change the denial to approval.

Read the article attached to my blog.  It  provides a road map for next steps when you or a customer are denied credit.  Make sure you are working with the right lender as well.  A reputable lender welcomes the opportunity to help a potential buyer improve their credit so they can own a home.

As always – Happy House Hunting

Mike
mnelson@equityprime.com
720.213.6260
@michaelfnelson2
NMLS: 1314188
Licensed in:

Michael Nelson - Equity Prime
California
Michael Nelson - Equity Prime, LLC
Colorado
Michael Nelson - Equity Prime, LLC
Florida

 

 

 

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Michael Nelson - Equity Prime

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