How You Can Turn Things Around
Trying to secure a mortgage is one of the biggest financial steps many people take, but not every application is successful. If your mortgage application has been rejected, it can be frustrating and disappointing, but it doesn’t mean the end of your dreams of owning your own home! Let’s take a look at why mortgage applications get declined, what to do next, and why securing professional mortgage advice from a broker is a great step.
The Most Common Reasons for a Mortgage Being Rejection
Some of the most common reasons for being turned down for a mortgage are:
- Poor credit history
- Not having a big enough deposit
- A high debt-to-income ratio
- A lack of consistent income or employment history
- Inaccurate or incomplete information on your application
Just one of the above might apply to you, or you may be affected by several. The more red flags for a lender, the less likely they are to approve you for a mortgage.
What to Do After Being Rejected
A rejected mortgage application doesn’t mean you have to give up. Take some time to collect yourself, and then get ready to take the next steps:
Eind Out the Reason for the Rejection
Most lenders provide a reason for declining an application. Getting in touch and getting a detailed explanation from them allows you to address any specific issues before reapplying.
Check Your Credit Report
Obtain a copy of your credit report – some of the most trusted agencies are Checkmyfile, Experian, Equifax, or TransUnion. Look for any inaccuracies that could be dragging your score down. If there are mistakes, you can dispute them to begin improving your record right away.
Improve Your Situation
There are some steps that you can take to improve your financial prospects, and while it may take some time to tick everything off, it’s worth getting started as soon as possible. You should pay off outstanding debts and ensure that all bills and credit are paid on time. You should also avoid taking on new credit until your financial situation is stable.
It’s a good idea to save for a larger deposit if possible, as this can improve your chances of approval with a wide range of lenders.
Why You Should Use a Mortgage Broker
One of the most effective ways to increase your chances of getting approved after a mortgage rejection is to work with a mortgage broker. They have access to a big network of lenders, including those who cater to those with more complex financial histories. They will review your financial situation to match you with lenders that are most likely to approve your application.
Rather than applying to multiple lenders and risking further rejections, a broker will handle the hard work for you. They’ll also show you how to improve your application wherever possible. Did you know that even simple errors can lead to rejection? They have a great eye for detail, so you can be sure that your application is in the best possible shape with no oversights.
You’re All Set
If your mortgage application has been rejected, you could still get a great deal and own your own home. Contact a broker today and take things from there.
