Was your mortgage application recently denied? If so, don’t panic! This doesn’t mean that all hope is lost. Team Crescenzo has some tips and advice for you on what to do if this happens to you!
Call Your Lender
First thing’s first, you need to find out why your application was denied. Legally, your lender is required to tell you why you were not approved. Giving your lender a call will give you some clarification. Not only this, but it’s also possible that your lender just needs some extra paperwork or some clarification from you on something regarding your application.
Review Your Credit
If you find out your application was denied due to your credit rating, you’ll want to take immediate action to improve your score. Even if your application wasn’t denied due to your credit score, it will always better your chances of getting approved by improving your score. Boosting your credit score isn’t done over night, so this is something you will want to jump on immediately!
Some tips for boosting your credit score quickly include:
- Making payments on time
- Look for any credit report errors and fix them
- Pay off any past-due bills first
- Increase your credit limit
- Make small purchases on cards with zero balances and pay them off immediately
You’ll want to avoid any balance transfers or opening any new lines of credit, but if you follow the above tips, you’ll find your credit score is improving in no time!
Be Patient
As difficult as it can be to remain patient during this process, this is something that’ll be extremely helpful for you. Sometimes your mortgage application could’ve been denied due to a recent bankruptcy, the length of time on your current job, or any other similar circumstance. In these instances, you’ll have to wait a time period before you can reapply. Your lender will give you an idea of how long that period may be. On the positive side, this gives you more time to save for a down payment and closing costs! It also allows you to spend more time working on boosting your credit score.
Our best advice for going through this process is to keep an open line of communication between you and your lender. Ask any questions you may have, and be sure to stay transparent with them. This process is stressful, but you aren’t alone, and you can always count on our team to guide you through this process!