I’m Not Eligible for the Mortgage Loan I Want. What Now?
Consider this…Your goal is to refinance and gain a shorter term, lower interest rate, or simply improve your overall situation but you’re struggling to get approved for the perfect loan. Or, maybe you’ve been given notice that you are not eligible for the home loan you want and now you think your dream home is falling through your fingers.
It’s Not a “No.” – It’s a “Not Yet.”
Our negative emotions like to run rampant and take control of our thought processes. You may be feeling disappointed, frustrated, helpless, and maybe even hopeless now that you’ve received word that you’re not eligible for the mortgage loan you want or need.
While many homeowners and ‘soon-to-be’ homeowners see this as a wall they can’t climb, borrowers should rather view it as an obstacle they aren’t quite yet ready to tackle. In many ways, not getting the refinance or new home loan you want is helpful. It could be a sign that you need to make some key adjustments to your finances. Instead of taking it as a negative, think about it as a positive reinforcement. With some work, you can be ready in the near future for that perfect loan.
In order to get back on track, you must first know why your loan application was denied. There are a number of reasons for an application to be denied—low credit, recent job changes, too small of a down payment. Some situations can be managed fairly quickly, but others take time. Knowing what is preventing you from getting a loan will only help you better manage and plan for the future.
Set realistic expectations for your future.
It’s not uncommon for a home itself to trigger folks to start the loan application process. Of course, a dream home is an investment worth making, but if you’re not aware enough about your financial situation and what it means regarding a home loan, then finding out you’re not eligible for the loan you applied for is surprising. In many cases, Loan Advisors can help you get a workable loan for a house you want, but in many other cases, you may find out that the home you want is simply out of your current reach. Before applying for another loan, speak with a Loan Advisor to gain a strong understanding of what your financial situation allows. They can help you understand what it would take to make you eligible for a better loan and can offer some useful tools to get there.
Written by: Chris Davies, Assistant VP Sales at Royal United Mortgage LLC