People looking to buy or refinance a home may have been turned down by another mortgage company based on their financial situation. If you’ve been turned down before and you think all odds are against you don’t give up. The first step to failure is not to try. Simply put don’t be that customer that says, “I don’t want to apply because I don’t want to waste your time”. Here’s what you should consider.
Every mortgage company in America today has certain things they must do to be compliant. One compliance mortgage company must meet is a federal threshold called ATR which stands for ability to repay. That means the mortgage company must pull a copy of your credit report, they must see your supporting income documentation and evaluate your ability to repay that loan. A mortgage company cannot make a credit decision or give you a correct proposal in terms of rates and fees without fully seeing your documents. Your tax returns if you’re self-employed, a credit report, and whatever assets you have in the bank. If you’re of the mindset “well, I’m self-employed I don’t have my income taxes. I don’t want to waste your time”. Lose that thinking and here’s why; a quality mortgage lender can articulate where you are right now and what it’s going to take to help you be successful. Even if it means the process taking a little while longer.
If a mortgage company is not willing to do that, find another one. Same thing if you think you have poor credit. If you think you have poor credit, reality is you probably do. However, that doesn’t mean the mortgage company can’t help you be successful as it relates to purchasing or refinancing a home. That does mean letting them pull a copy of your credit report. If your credit score is bad and you think that getting a credit inquiry is going to hurt your score even more, it’s probably not going to hurt your score any more than what made it bad in the first place. In other words, surrender to the lender. Let them do what it is that they do well and when you’re interviewing the right company to work with pick one that has the forward-thinking approach in mind. Someone that is going to collaborate with you and that is willing to give you the time and the energy. Telling the lender, “I don’t want to waste your time because I don’t think I’m going to qualify” is a big waste of everyone’s time. Versus just supplying them the paperwork and letting them go through the process. You know you have a good lender when they’re more interested in the relationship with you as a consumer than they are about helping you immediately and putting you into something that you might not otherwise want. You want the forward-thinking approach lender that has the long-term approach in mind and that can collaborate with you over the course of time needed if there’s adversity in your financial picture.
If you’re thinking about getting qualified for a loan start today with a no-cost loan quote today!