Securing mortgage approval can be a challenging and frustrating process, particularly for those who are unfamiliar with lending requirements. The process of obtaining a mortgage involves many steps such as filling out applications, providing documentation of income and assets, and undergoing credit checks.
Unfortunately, even after jumping through all these hoops, many potential buyers find themselves being denied financing. Whether it’s due to insufficient income or credit history, a high debt-to-income ratio. or discrepancies in documentation, this doesn’t necessarily mean that your dreams of securing mortgage approval are over. Finding the right mortgage lender who will wade through the process with you again and help you understand your mistakes will be an integral part of getting back on track once more. Take these next steps to procure quality mortgage services that will work for you.
Find the Reason for Denial
At some point in your initial process, a professional mortgage lender should have given you an indication that you may not be able to qualify for financing. Being transparent and letting you know how your financial information looks should not come as a shock to you; a good lender is supposed to provide you with the reasons you were denied so you can find a way to resolve the issues and carve out a more solid financial footing. Find those reasons and make a plan to repair and correct issues so you’ll be taken seriously next time.
Examine Your Credit
The determination of loan types and rates for which a borrower is eligible is influenced by their credit score. If you are applying for financing in the near future, carefully scrutinize your credit report to identify and correct any inaccuracies that may be causing a reduction in your score. Even with low credit scores, alternative lenders may still offer loan options that are suitable within a score range. Government-backed loans such as the FHA or VA allow lower credit scores when compared to private mortgages.
Pay Down Debts
Lenders also evaluate borrowers’ outstanding debts against their income to determine if they’ll be able to pay a projected mortgage payment. Mortgage companies prefer a debt-to-income ratio of less than 43%, but this doesn’t mean that you are out of the picture. Work on paying down credit card balances and other unsecured loans as you prepare to go for round two.
Find the Right Company To Help you Through the Process
Working with the right mortgage company makes all the difference in the world when it comes to getting all of your affairs in order for financial approval. Ace Mortgage Loan Corporation is a professional mortgage company in Coral Springs dedicated to serving its clients and getting them the financing–and the homes—that they deserve. Offering mortgage services, FHA and VA loans, and purchasing and refinancing options, we provide solutions that yield you real lending results. Contact Ace Loan Mortgage Corporation today to see how we can make your dream of home ownership a reality.