If you’re denied by a lender, don’t give up. There are alternate ways that you can still obtain a mortgage.
If you’re looking to take out a mortgage, you’re going to have to gain the trust of the lender first. It’s hard to blame them for sustaining such high standards when it comes to taking out a mortgage. The large amounts of money involved makes for a risky transaction. If your home ownership fantasies have been temporarily halted due to problems with your lender, then it’s time for you to seek out alternate ways that you can obtain your mortgage.
Find a Cosigner
If your income doesn’t match to what the lender’s qualifications, you can find someone to be a cosigner with you. However, they won’t automatically get you approved. Only a part of their income will count towards your loan amount, regardless of their financial responsibilities. Don’t bite off more than you can chew.
A cosigner is essentially guaranteeing the lender that the monthly mortgage payments are going to be paid in a timely manner.
Before you go this route, it’s important that you and your cosigner are in constant communication. Also, transparency is also crucial in that your cosigner should know all the details and numbers before going in. Remember, their credit score is on the line too.
Seek Out a Less Expensive Home
If you don’t qualify for the mortgage amount that you want, it may be time to set your sights on a less expensive home that has a more fitting price range. This may get you approved, due to the lower amount being taken out. Furthermore, there’s always the option of moving into a different home at a later, and more financially-stable, time.