If These Things Have Changed Since You Were Turned Down For A Mortgage, You May Wish To Try Again
Posted on: 29 December 2016
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Being turned down for a mortgage is never a good feeling, but it's important to remember that this result isn't personal — it's simply a reflection of your current financial standing. If you attempted to buy a home several years ago but were unable to secure a mortgage at the time, you may have been renting ever since. If your desire to purchase real estate is once again growing, it could be time to check into a mortgage once again. If the following things in your life have changed, you may hear good news this time.
You've Improved Your Credit
A poor credit score is a common reason to be turned down for a mortgage, but you should feel free to speak to another mortgage lender if you've improved your credit since your initial mortgage denial. While a few changes won't instantly cause a low credit score to skyrocket, a prolonged period of paying your bills on time, steadily reducing the amount that you owe, not carrying a balance on your credit card, and dealing with any collections agencies that have been in contact with you can all contribute to a better credit rating.
You've Secured A Higher-Paying Job
One factor that could have contributed to getting declined for a mortgage in the past was a low-paying job; your lender could have felt that you wouldn't have enough earnings to be able to successfully make your mortgage payments. If you've worked hard in the years since being turned down and are now earning more, either at the same company or at a different company, you can feel more confident when you make another appointment with a lender. Increasing your salary can often be the difference between being turned down for a mortgage and being approved for one.
You've Paid Off What You Owe
Owing money to a variety of sources isn't just financially stressful — it can also cause you to be turned down for a mortgage application. However, in the years since you got the bad news, you may have paid off what you owe. For example, you could restore a credit line balance to zero, finish paying off a student loan, complete the payments on your vehicle, and pay back any personal loans that you may have taken out when you were short on cash. Gather up the paperwork from these loans that show you have a zero balance so that you can take them to your next mortgage appointment.