#61 Turned Down? What Happens Next?


Well, you are not alone; not every applicant for a home loan is accepted the first time around.  It can be discouraging, and can feel like the air just went out of your balloon.  But, success arrives in many ways – sometimes disguised.

Before you got the news that your application for a Home Mortgage loan was turned down, you and your Mortgage loan Officer worked hard to assemble and examine all the necessary facts that would determine either your eligibility, or the need for more preparation.  It only stands to reason, that the requirements to take on such a responsibility demand proof of both readiness and capability.  It has little to do with good intentions, promises or past statistics!   Getting a rejection was hard to take.  

Time and timing are significant for you now, but, there are also strong feelings happening – some of raw disappointment, a big letdown, a sense of frustration or even a sense of failure.   You and your loan Officer worked so hard preparing.

There is some good news that comes with being turned down at your first loan Application submission.   It’s the fact that the reason for the denial is clearly spelled out!  The Lender might comment concerning the weak points of the application and possibly offer advice.    That means that you and your Mortgage loan officer will know exactly where to work on solutions to get you firmly qualified.  Calling rejection “good news” is not intended to patronize or deliver false hope; it’s just one way to try to see that proverbial glass half full rather than half empty.  And, in fact, almost everything can be fixed.

You do want to buy that home of your own!  Your home Mortgage loan Officer wants you to buy that home of your own!  Really, what is the only acceptable alternative to just giving up?  Fix it and try again.

And, that part is simple:  We learn and build from the aspects of the application that were strong.  Then, we make a plan to strengthen what was weak and unacceptable.  Your home Mortgage loan Officer will re-analyze the Application that was submitted and study the rejection document containing the Lender’s reasons for denial.  That would be the first step for making the needed changes and adjustments to the application information.

There will be remedial work to be done, and you and your loan Officer will not want the Application information to become outdated.  It’s important to look at the denial Lender’s reasons.  Were you turned down because of too much outstanding debt as it relates to your earnings, your overall obligations and the prospect of adding a home Mortgage?  Is your employment profile and history erratic?  Were there some calculations that seemed troublesome?  Is your Credit history negative?

 Being turned down at first try does not (should not!) mean you shouldn’t bother to re-apply, with improved information, as soon as possible.   There are situations where a candidate is just “OK” in some parts of the required documentation while other parts are strong; overall it might not be ideal, but close enough to try for acceptance.   Evaluating such a “borderline” situation may lead your Mortgage loan officer to submit your application -- with a caution to you that there is a chance for denial.  (We have all had to make that kind of a “judgment call,” on something, at one time or another!)

When a rejection happens, you can count on the loyalty of your Mortgage loan officer to help you with a plan to navigate the maze, overcome the problems where you find them and resubmit a successful application.

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