Having to endure a mortgage denial can be a taxing experience. Months of hard work that appear to be seemingly ignored and overlooked would be sufficient to take the wind out of anyone’s sails, especially when they’re looking to pursue their homeownership dreams further.
It is important to note that while a denied mortgage may be a heavy blow to your plans, it does not mean you have to go back to the drawing board altogether.
What instead needs to be done is to assess exactly what your lender of choice has set in place in terms of requirements, and tweak your application to fit this mould. In short, assess your debt across all financial fields within your assets. If it is becoming overwhelming across the board, double-check what your lender’s debt requirements are and adjust accordingly.
Additionally, look into what your lender is willing to accept as a ceiling for use of personal income for your mortgage application. If you’re aiming too high or too low in your paperwork for your application, you’ll need to make some adjustments.
A major way to fix a denied mortgage is all-in-all, the most simple, which is essentially finding a lender that has rules that aren’t as restrictive or strict.
Once you have finished shopping around for a new broker, even if their application thresholds are a little more lenient, it is crucial you further assess the state of your finances. The most important aspect of this assessment is credit, as credit can be the one thing that tanks your mortgage application even if your personal income and debt are more or less secure.
The solution to this? Make sure you repair your credit by making payments and adjustments accordingly. Once you have done this, you can begin to take the steps for reapplying for your mortgage!