Turned Down for a Mortgage? What to Do if You are Declined - and How to Get Second Opinion

 If you have been declined for a mortgage, you may think that home ownership is out of reach. However, there are ways to turn a rejection into an approval and to find a more accessible loan. Here are just a few steps you can take to learn about your loan options and get the mortgage that works for you. 

Find Out Why The Mortgage Application Was Denied      

The first step to getting a second opinion is to find out why your mortgage application was denied. Banks commonly deny mortgages for reasons like a low credit score, a high debt-to-income ratio, or concerns about the applicant's past and present employment status. To qualify for a mortgage, most lenders want to see someone with a credit score of 640 and some 680,  a debt-to-income ratio of less than 43 percent after the mortgage is included and at least 30 days in your current position if using wage income to qualify for the loan.   This practice does not apply to all lenders. Some credit score is 580-619, some back end ratio is 51% are just a few of the differences I can name. So don't take a denied loan application,  until you talk to me. 

Not All Lenders View An Application The Same Way    Some will never stop looking for a way to make that loan work, whether it be with grants, down payment assistance, first time home buyer loan and much more to choose from.  All you have to do is CALL ME.

A good reason why it is worthwhile to ask for a second opinion about your ability to get a loan is because no two lenders will view an application the same way. For one lender, a credit score of 650 is insufficient for getting a loan – but another lender might be more than happy to offer you a mortgage with a score of 650.  To get a second opinion, you may wish to talk to a mortgage broker, which I have made it easy for you, BELOW,  who will be able to scan a variety of loan programs to find one that works for you. You also need a Lender who might hold their loans in-house and not sell them, therefore they do not have to meet the strict criteria, in order for the loan to be salable, which is where some lenders and banks make their money, selling the loans. Each lender has their own guidelines based on whether they sell the loan or not and how much risk they want to take.  So, if you have been turned down and feel you would like a second opinion before throwing in the towel, call me and I will connect you up with one of my lenders at NO COST to you.  What do you have to lose, EVERYTHING,  that dream home.  If you are turned down by both a traditional lender and non traditional, the Lender, below,  will be glad to help you repair your credit to get you to where you could qualify for a loan. Again call me, I would be happy to help and guide you in the right direction, to work toward that home ownership


There Are Ways To Find Down Payment And Closing Cost Assistance, let the Lender I use help.  You see I give my Lender a lot of Buyers just like you and they don't want to lose my business, so if there is anything they can do, they will try very hard to get the loan approved. If they can not for some reason get the loan approved, they can also offer you Credit Repair to get you on the track to home ownership.


Those who have a low credit score or other questionable metrics may be able to qualify for a loan by offering a larger down payment. While a first-time buyer may not have the cash on hand to make a larger payment, there may be programs that provide grants or low-interest loans that can be used as part of your down payment or to help pay closing costs. With this extra money, it may be possible to overcome lender objections and obtain a mortgage.

If your mortgage application has been rejected, it doesn't mean that you can't get a mortgage from another lender. If you're ready to buy a house but just need to clear the mortgage approval hurdle, there are ways to get a leg up. If you have been turned down or would like to see what you qualify for or the various loans, grants, first time home buyers monies, give me a call and I will help you get to the right lender.  Do not take the first no, check with more than one lender and ask do they sell their loans or not. Check with loan companies that do sell and also with some that do NOT sell their loans, it will make a difference and could be that yes you are approved, you are looking for.  So the bottom line, not all Lenders are the same.


 Thinking of buying and don't know where to start, call me and I would be glad to sit down and explain the process and how it works and guide you every step of the way, to get that home ownership you desire.  If you are thinking of buying and not sure if you have enough money saved or better yet, no money saved, yes, there are loans that can be structured for no money down.  Some of the popular loans are FHA (First Time Home Buyer), Conventional, USVA, Rural Housing, My Community Loan, FHA Loan 580-619 credit score, KHC downpayment assistance program, VA Loans, Portfolio Loans and on, and on, and on.  Not all the Lenders offer all the different types of loans, some offer very few, but chances are you are not sure the place you went offered all these options, well that is where I can help.  I can offer a Lender who offers ALL the loans and can rearrange all the pieces of the puzzle until they fit. Call me or better yet I will put the link below to the Lender who offers all those different loan types.  You are welcome to call her or fill out an application on line, which ever is easier for you.  I am one of those folks who do everything online, so which ever mode of communication you prefer she will do.  I hope I have been of some help to you and you don't get discouraged if you have been trying to buy your first home or it is your 5th home. For those of you who are renting, check out your chances in owning a home and build your equity. Everyone deserves a chance to home ownership.


If you think you would like to just talk to a Lender, with NO OBLIGATION, no cost to you and see if you qualify for a loan or thinking of selling and buying, check this Lender out.  They hold all they loans in house, do not have to meet the strict criteria of only accepting salable loans. Very competitive rates! I have put her link here to make it easy for you.  Click on the BLUE APPLY NOW! button to reach Kathy Small with Caliber Home Loans, CLICK BELOW to apply or talk to Kathy regarding any questions you may have regarding lending. Again, this is NO COST to you.  I hope this helps.




 Thinking of Buying or Selling? Call me, Karen and put my 30 years experience to work for you.

 For more information about real estate in the Louisville, Jefferson, Oldham, Shelby, Spencer, Bullitt county areas,  contact me, Karen Rodriguez, at 502-643-2255 or email soldbyk@gmail.com. Years of Experience, Experience the Difference, in fact, 30 years difference.   If you are looking to purchase, you can search all available properties for sale on my website and save your favorites, even set up to email yourself new listings in the areas you are interested in.

  Go to:  WWW.SOLDBYK.COM to search ALL Greater Louisville Properties for sale including Southern Indiana and all counties.

  If you are thinking of selling, call me for a FREE home evaluation in your neighborhood, from staging, pricing, housing values, interest rates, how appraisers are valuing properties, now that the guidelines have changed. I would love to sit down and talk with you. Just call me and let me know how I can help with your real estate needs.  I give a guarantee on what I say I will do. Thanks!!! Karen