Mortgage refinancing is something many of us choose to go for, especially when the mortgage rates in the market are low. There is no doubt that such a step does lead to many benefits such as shortening the term of the mortgage, reducing the monthly payment that you need to make, having enough cash on hand to make improvements on home and getting rid of mortgage insurance. However, not every borrower is lucky enough to have his mortgage refinance application approved. If you are one of those who have been denied mortgage refinance, here is what you need to do:
Understand why your application got denied
As per many banks and mortgage lenders about 33% of the mortgage refinancing applications is getting rejected. This might be because of a bad credit score, a problem with the existing mortgage or any issue with the home. Sometimes the housing market could be the culprit too. A bad housing market would usually mean you owe much more than what your home may cost. Unless you know why your application is rejected there is no way you can correct the situation and get your application approved.
Take Control of the Situation
Instead of brooding over your mortgage refinance rejection, try and take control of your situation. Now that you know what was wrong, you should start working on the issue so that you can get your next refinance application approved. If it was due to a bad credit score, try getting a new credit report. Check if there were any errors in the previous report. If not, pay back any pending bills or debts that might have been overdue. The lesser the debt you owe the better will be your credit score. This will also lower your debt-to-value ratio which can improve your chances of approval.
Look for Other Options
For sure you may find many mortgage refinancers if you run an online search. Try doing that and apply with a few more lenders who may be a bit liberal when it comes to approving your application. Going through a referral might help too. Make sure you compare the rates and check the terms before you start applying. You can even talk to your existing mortgage lender and see if he can offer you a better package. If nothing works you could even consult an independent mortgage broker who will give you the perfect advice on what to do to get your mortgage refinance application approved.
The denial of mortgage refinance from a mortgage lender or a bank is not the end of the world. The options are many. There are many ways to correct your issues and re-apply. All you need to do is choose the right option and move ahead.
This was from the borrower’s point of view. For mortgage refinancers who are all ready to approve mortgage refinance applications, here is a way to get in touch with more and more prospects. Heritus Marketing Group offers exclusive mortgage leads, mortgage real time leads and mortgage live transfers to many mortgage lenders and refinancers across the USA. These contain complete details of people who are interested in mortgage refinancing.
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