What Happens If My Mortgage Application Gets Rejected?
Rejection on any level, at any time, is never fun. However, in some situations, rejection becomes a worthwhile learning opportunity. If your mortgage application gets rejected, turn it into a positive for your financial situation.
The average mortgage amount in Australia has risen to $550,000. At a home loan interest rate of 3% over 30 years, this equals a monthly repayment of $2,108.00. If a lender follows the 28% rule, it means that the homebuyer requires a monthly income of $9,000.
After the application is denied, contact your loan specialist. Introduce yourself and request information on your application. Specifically, ask the professional why they denied the loan. Common reasons for denial include:
- Blemishes on the credit report
- Unstable employment history
- Missing paperwork
These reasons can also apply to a car loan application.
Once you have the reasons for the denial, you can begin working on ways to fix them. If you have blemishes on your credit report, work with a credit professional. Sometimes you simply need to let some time go by. First-time homebuyers often have a short or unstable employment history. The good news is that fixes or alternatives exist.
Mortgage House is a non-bank lender. We offer conventional mortgages with the standard requirements. However, some homebuyers don’t qualify for this loan because they lack a 20% deposit or full financial documentation. In these cases, it’s better to apply to a corresponding loan such as low doc.
Mortgage Application Gets Rejected Conclusion
If your mortgage application gets rejected, it’s an opportunity to improve your finances. Then, try again. Receiving feedback from a lender helps you come back stronger financially. Mortgage House loan specialists help clients achieve their goals. Contact our team today.