Information About
BOSTON HOME
Articles
What Happens When You're Denied a Home Mortgage?
When you're thinking of moving out of your Boston apartment into a new home with your family, you first need to begin by getting pre-approved for a home mortgage. However, many people are denied a home mortgage and they don't know why.
It's never fun being denied for anything, especially a home mortgage. It can often feel as though your dreams are completely crushed and that you will never be able to find credit anywhere, but that's not necessarily the case.
The first thing you need to do when denied for a home mortgage is to find out why you were turned down. Lenders are required by The Equal Credit Opportunity Act to tell people in writing why you were turned down in credit. This is done when you are tuned down and the letter should include two items:
The specific reason or reasons why they denied you credit
Whether or not your credit report played a role in denying you a home mortgage, as well as the name of the credit reporting agency they received your credit report from.
If you do not understand the bank's reasons for turning down your home mortgage, you should ask them straight out. Many times the reasons are not clear and you have the right to know why. Receiving this information is vital in ensuring that you can correct the issue so that you are not turned down in the future.
You may be denied credit for various reasons and one of those is not meeting your creditor's minimum income requirement. You can also be denied for not being employed at your current job long enough or not living in your apartment for long enough. If your home mortgage was denied because you didn't meet the income requirement, you may have other options, such as an FHA loan. If you are a veteran, you may be eligible for a VA loan.
If your home mortgage was denied because of your credit report, you are entitled to receive a free copy of it. In fact, you are entitled to a free credit report each year. However, in the case of a denied home mortgage, you have 60 days to request your free report. Be sure to read this carefully and make sure that all of the information is accurate. In the event that something is not correct, that could have been the reason you were denied and you want to get any errors corrected immediately.
Always talk to your Boston home mortgage lender about why you were denied as well. They may be able to provide you with useful information that you can utilize and then use to try to get a home mortgage later.
