The Banks Said NO To Your Mortgage Application
Getting turned down by the banks these days is far more common place then it was decades ago. With tighter rules, not everyone can fit the “cookie cutter” formula of the major banks.
For many potential home buyers, being turned down for a mortgage can be a distressing situation. It is important to remember though, that there are options, even if your application was turned down because your credit was less than perfect. There are several steps you can take that might make you a more attractive borrower; there are also mortgage options available, aside from a mortgage from a conventional bank.
Potential Reasons for Being Turned Down
The most common reason for being turned down by banks is an applicant’s credit score. There are other reasons a bank might turn down a borrower; one might not be able to provide satisfactory documentation regarding their income, they may have chosen a property that the bank simply doesn’t like or isn’t comfortable with. Banks look at the type of property and how easily they’ll be able to unload the property if someone defaults, so if they don’t like the potential of the property, they may turn you down.
Alternatives to a Mortgage with a Traditional Bank
If you’ve been turned down for a mortgage because of your credit, you may want to look at a bad credit/poor credit mortgage, or a mortgage through a private lender, known as a private mortgage.
Private mortgage lenders are a great option for those who have been turned down by traditional banks – they have shorter terms for the loans and put a lesser burden on borrowers because they don’t often require that borrowers pay the principal down, just make monthly payments on the accrued interest. This could, theoretically, help someone who has been turned down by a bank due to a low credit score.
At CVE Mortgage Group, we have many lenders at our disposal that do not follow the same general guidelines as the major banks- but still have great rates. Allow us to work for you to determine if one of these lenders may be right for you!
Contact me today to see how we can help you find the right mortgage product for your situation.