Reasons Why You Got A Home Loan Denial

Solution To A Home Loan Denial:

You are pre-approved for a residential mortgage loan by a bank, credit union, mortgage banker, or mortgage broker and you go through the whole mortgage approval process but get a mortgage loan denial.  What happened?  What do you do?  What is your next step?

According to statistics by the MBA, Mortgage Bankers Association, 30% of all purchase mortgage loans are denied and about 50% of all refinance mortgage applications get a mortgage loan denial.

Home Loan Denial

In the event if you get a mortgage loan denial, it is not the end of the world.  There is a reason why the banker, credit union, mortgage banker, or mortgage broker decided to proceed with your mortgage application process.  The chances are that you got an automated approval via Fannie Mae’s Automated Underwriting System and the chances are that you got a mortgage loan denial due to the mortgage lenders overlays.  Just because a mortgage lender does not approve you does not mean that you do not qualify for a mortgage loan.  Over 50% of my business are borrowers who have gotten a mortgage loan denial from other lenders.  I normally get most of my mortgage applications approved due to the fact that I go over the case scenario with my wholesale lender and its underwriting department and represent mortgage lender who have no internal overlays.  As long as the mortgage loan borrower gets an approved/eligible per DU FINDINGS, I am confident I can close the borrowers loan because we are mortgage lenders with no lender overlays.  We just go off approve/eligible automated findings.

Why Did I Get Home Loan Denial?

If you got a home loan denial, find out the reason or reasons why the mortgage lender denied your mortgage loan.  Was it because their overlays or was it because you, as the mortgage applicant, did something wrong like missed a credit card payment, quit your job, bought a car, or maxed out your credit cards.  There is a fix for everything and I can help you get a mortgage loan approval in Illinois, Texas, Georgia, Nevada, California, Pennsylvania, New Mexico, Michigan, North Carolina, New Jersey, Missouri, Florida, Tennessee, Alabama, Indiana, Wisconsin, or Minnesota but getting me the reason for the home loan denial by your previous mortgage lender will help save me time and find a solution to get you approved the second time around.

Some Reasons For Home Loan Denial

There are many reasons why a mortgage lender will get you a home loan denial.  One of the common reasons are that you can be a mortgage loan borrower that have  high debt to income ratios and if your mortgage loan originator did not lock your mortgage rate, a spike in interest rates can automatically disqualify you and render a mortgage loan denial.  I specialize in high debt to income ratio mortgage loans and have wholesale lenders who will cap FHA debt to income ratios at 56.9% with no mortgage lender overlays.  Another way we can solve this problem is buying down the rate or getting a non occupied coborrower.  Other reasons for mortgage loan denial is where the borrower has maxed out their credit card and when the mortgage lender does a soft pull prior to issuing a clear to close, the borrowers credit scores plummets and debt to income ratios goes above the maximum allowed.  Other reasons are when the borrower cannot get a Verification of Employment for overtime income, cannot produce the proper documents requested by the mortgage underwriter, cannot source the down payment, has recently bounced a check, has a recent late payment, just got sued, and dozens of other reasons.  Again, there are fixes for everything so do not be discouraged in the event you get a mortgage loan denial.  If you got a mortgage loan denial, please contact me at 262-716-8151 or visit me at www.gustancho.com .  I am confident I will be able to help you.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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