Want a new home? Just get a mortgage! Easy, right? Well, not for everyone. Mortgage applications aren't always approved and there are people who learned it the hard way.
If you are one of these people who got rejected for a mortgage, you may want to keep trying, but not without resolving the reasons why you got declined during your first attempt. Here are a few factors that can help you finally succeed in getting a mortgage approval:
Get A Second Appraisal
It is also possible that a lender would deny a mortgage because the value of the property involved is not big enough to back the said mortgage. If the reason you got declined for a loan is a poor loan to value ratio, a second appraisal may be helpful. Many appraisal companies give significantly different appraisals over the same home. Bear in mind however, that you can't get two appraisals from one lender. If you need a second appraisal, you would need to contact a different lender.
Redeeming Your Credit Can Do Magic
To cut to the chase, having a good credit history is your key to an approved mortgage. So if the main reason why you have been declined for one is the damage found in your credit record, the best you can do is to wait a little while and then re-apply. Spend this time redeeming your credit credibility by paying off your debts and paying your bills on time.
Provide A Down Payment That Is Higher Than Your Original Offer
Lenders could also deny borrowers when they are loaning too much money, this is still business after all. So if you offer a higher down payment, there is good chance that the lender will finally approve your mortgage application. But if you ask for a mortgage that is more than 95% of the property's value, it's almost sure that you will be declined.
