Jim Potts

Synergy One Lending

  • Home
  • Resources
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage Glossary
  • Buyer & Seller Guides
    • Construction & Renovation Loan Learning Center
    • Home Buyer Handbook
    • Buying a Home
    • Comprando Una Casa
    • Selling Your House
    • Vendiendo Su Casa
  • Schedule Appointment
  • Apply
  • Reviews
    • My Reviews
    • Google Reviews
  • About Jim
  • Contact Us

Have You Been Denied for a Mortgage? Here Are 3 Reasons Why You’ll Want to Keep Trying

November 24, 2021 by Jim Potts

Have You Been Denied for a Mortgage? Here Are 3 Reasons Why You'll Want to Keep TryingIf you’re in the market for a new home, you’ll most likely need a mortgage in order to afford it. But for some home buyers, getting a mortgage isn’t easy. Banks and other lenders are often hesitant to lend money to certain consumers, often for good reason.

But sometimes, lenders’ reasons for declining you aren’t entirely valid. That’s why, if you’ve been denied for a mortgage, you’ll want to keep trying to get mortgage funds. Here are three factors that can influence the likelihood of approval on the second try.

A Second Appraisal Might Change Your Circumstances

Sometimes, a mortgage lender will deny a loan because the property value of the home in question isn’t large enough to back the loan. If your mortgage lender declines you because of a poor loan-to-value ratio, getting a second appraisal could help. A lot of appraisal companies will give wildly different appraisals on the same property, with some brokers reporting valuation differences of up to $1.3 million.

Bear in mind that you cannot get two appraisals through the same lender, so if you choose to have the home appraised a second time, you’ll need to find a new lender.

Cleaning Up Your Credit Report Can Work Wonders

What’s on your credit report will have a large role in determining whether or not you get the mortgage you want. If you’ve been denied because of entries on your credit report, you’ll want to take every step possible to correct those report issues. If you’ve been more than 30 days late on a payment in the past, it will show on your credit report and affect your score – but by calling your creditor and asking them to remove the negative, you can bring your credit report back into good standing.

You’ll also want to pay off any and all past due balances as soon as possible. If you can’t pay what you owe in full, you’ll want to negotiate with your creditor to pay part of the amount. This will result in the debt showing on your credit report as “paid as agreed”, which will boost your credit score.

An Extra Down Payment May Be A Good Idea

Sometimes, a lender will decline a borrower if the borrower is asking for too much money. If you’re pursuing a mortgage worth more than 95% of the property value, you’ll probably be declined. But if you make an extra down payment, you can lower your loan amount – which may incline your lender to approve your application.

If you’ve been declined for a mortgage, don’t give up. As you can see there are steps you can take to get approved.

Jim Potts

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage Preapprovals and Credit, Mortgages

Jim Potts

Jim Potts


Branch Manager
Call (760) 337-8100
NMLS# 227144
Synergy One Lending Logo

What's My Home Worth?

How can I help?


0 / 180

Connect With Me

Archives

Latest Articles

  • White Lies That Could Make It Harder To Buy A Home
  • Rebuilding Costs: Rethinking How Much Homeowners Insurance You Really Need
  • 5 Tips for Crafting a Counter-offer That Doesn’t Scare Away a Potential Home Buyer
  • What’s Ahead For Mortgage Rates This Week – March 27, 2023

Our Location


5252 Balboa Avenue, 601a
San Diego, CA 92117

Copyright © 2021 | Synergy One Lending | NMLS# 227144 | Corp NMLS #1907235 | Licensed to Do Business in the State of CA | NMLS Consumer Access Portal | Privacy Policy | Disclosures


Equal Housing Lender

Copyright © 2023 · Powered by MySMARTblog