How To Get A Mortgage Loan If A Bank Turned You Down
When you go to a bank for a mortgage loan, they will evaluate your situation and determine if they can offer you a loan. If they turn you down, it is because you do not meet the criteria they have in place for a loan, but this does not mean you cannot get a loan. There are other options, such as visiting a mortgage broker for a loan.
What Is a Mortgage Broker?
A mortgage broker is a person who works in the loan industry, but this person does not work for just one bank or lender. Instead, a mortgage broker has connections with many lenders, and this gives brokers the upper hand when helping people find loans.
Banks, on the other hand, have limits, as they only offer loans through themselves. A broker will fully evaluate your situation to help you find a loan program you qualify for.
How Does a Broker Do This?
For a broker to help people find loans, brokers must know about all types of loan programs in detail, and most of them do. When you talk to the broker, he or she will want to know why you did not qualify for a loan with a bank and will want to know what problems you have with your credit or finance.
The broker will also ask you questions about your down payment, current living situation, and job status. The goal of these questions is to determine what type of loan program you might qualify for.
For example, you probably won't qualify for a conventional loan if you do not have a lot of money to put down, but you may qualify for a USDA loan or an FHA loan. These loan programs offer a way for people to buy homes when they have less than perfect credit. They also offer a way for people to buy homes if they do not have a lot of money to put down.
If the broker thinks there is a chance he or she can get you a loan, the broker will ask you to fill out an application and submit financial information. The broker will then begin working on your loan and hopefully have an answer for you within a week.
If you cannot get a loan through a bank, you should try working with an independent mortgage broker. This might help you get a loan so that you can become a homeowner.