Rejected For A Mortgage? Here’s How You Can Still Buy A Home In Plainfield!
Buy a House After Being Rejected for a Mortgage
The first thing you are told to do when getting ready to buy your first home in Plainfield is to apply for a mortgage. This is important because there is no point in searching for homes if you won’t be able to afford it.
Sometimes you get an approval letter which gives you the green light to start looking for your new home. However, it is just as common that the lender will come back and give the sad news that you were not approved for a mortgage. But if you are rejected for a mortgage, I do not want you to become too discouraged!
In today’s post, I will help you to get a better understanding of why you may have been rejected for a mortgage and the steps you need to take to get that approval letter before you know it!
Why Were You Rejected for a Mortgage?
First things first, we need to figure out why you were rejected. Then we know how to implement a plan to correct the issues. The most common reasons that people are rejected for a mortgage are:
–Your credit score is too low
-You have too much debt
–Your income is too low compared to your debt
-You don’t have enough for a down payment
Luckily, understanding the reasons for your mortgage rejection won’t be a mystery because the lender will explain what is preventing them from cutting the loan.
Examine Your Credit Report
First of all, it is important to understand that different lenders have the ability to work with different credit scores. However, the better your credit, the more buying power you will have and the lower your interest rates will be. Therefore, if the lender says that your credit is the issue we need to take a hard look at your credit report. This vital report will outline:
–Who you owe money to
-How much debt you have
–How old your longest line of credit is
-What types of credit lines you have open
–How many delinquent payments you have
Being turned down ro rejected for a mortgage is an obstacle not the end. In most cases, a simple fix can be found to improve your score within a couple of months. However, it is important that we take a strategic approach that will have the greatest impact in the least amount of time so don’t try to guess on your own what you should do to fix your score.
Get Help With Your Student Debt
One of the biggest obstacles holding back homebuyers, especially first-time buyers, is their student debt. It is no secret that student debt can be crushing in many ways. The biggest impact student loans has on you now is your debt-to-income ratio. Sometimes student can cause you to be rejected for a mortgage. One option you have for this issue is to refinance your loans to make your payments smaller. This will result in the length of your loan growing but you can always change that down the line from the comfort of your new home.
Get A Personalized Plan That Makes Sense
While there are common issues and typical solutions, it is important to understand that you are a unique individual that deserves a personalized plan that makes the most sense for you. If you are rejected for a Mortgage, don’t despair. When you hire me as your Plainfield Realtor, I will work with you to assemble a strategy to become a homeowner with the least amount of resistance possible. Even if you aren’t sure if now is the right time to buy, I am still happy to work with you to make sure you will be able to get approved for a mortgage when the day comes.