Home Loan Denial - How to Come Back Strong
Posted May 18, 2014


Many borrowers face serious challenges in getting approved for a home loan. It could be because of a tight economy or maybe the buyer has a bad credit history. After the rejection the goal should be not to give up but to keep a positive attitude. Take control of the situation and start working on what is necessary to eventually qualify for the loan.

Work on improving your credit score, educating yourself on exactly what is needed to make yourself more attractive to lenders. It may be that the housing market is slow or the economy is bad. When conditions improve, so will your chances of getting the loan.

Reevaluate the home you want. Could you live with a less expensive one? This choice by itself may increase your chances of qualifying for a home loan. Making this type of purchase may be the most reasonable choice for your current situation. You can then work toward buying your dream home in the future.

Applying with a different lender may bring better results. There are a lot of lenders to choose from and the next one may look at your situation a little differently. If you visit multiple lenders and are turned down by all of them. you'll definitely come away knowing what needs to be fixed. Keep a positive attitude and use the information and advice given to you to work in your favor.

Be sure to stay away from predatory lenders. You could suffer irreversible damages to your financial situation.

Although not highly recommended, a buyer may want to get a co-signer. The co-signers income may be considered an amount toward the loan, even though the person doesn't live with the buyer or help make payments on the loan. As you already know, this can be risky for the cosigner if the buyer defaults on the loan, placing both their assets in jeopardy.

In the meantime, work on saving additional funds for your down payment and closing costs as well as improving your credit score.

Posted By: Michelle Keaton-Barrow
May 18, 2014 10:53 PM




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