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Corrective Measures You Can
Take if Your Loan Application Is Denied
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It’s disheartening when you go through all the trouble to
qualify for
a loan only to be told you’re
being denied. But don’t get too discouraged
– there is hope even after you’ve
been turned down.
First you should
know your rights. By law, lenders must tell you
(in writing) why your loan application was denied.
Knowing why gives you the perfect opportunity to correct
the situation.
There are a number
of reasons you could be denied a loan. If your
income doesn’t meet their minimum requirements or you
can’t afford a big enough down payment, there are things
you can do to remedy the situation.
The Federal
Housing Authority helps consumers with low to moderate
income get housing approval with low monthly
payments. A down payment with an FHA loan can be
as low as 3% instead of the usual 10%.
If the approval
problem stems from a low appraisal of the property
you’re seeking to secure lending for, then you may want
to re-negotiate with the seller, or see if the appraiser
undervalued the property and have it appraised
again.
If your credit
score was too low and a lender denied your loan, then
you should obtain a copy of your report to clear up
anything that is wrong on your credit report. If
you dispute any items, you can add a statement telling
your side of the story while you’re working to clear up
the matter.
If you still can’t
repair your credit history, contact the House of Urban
Development to see if you qualify for a loan for those
who have bad credit or no credit. Start repairing
your credit by making all payments on time and establish
a good history for at least 6 months before applying
again.
Information contained herein is deemed accurate and correct, but
no warranty is implied or given. Please consult
a financial advisor for specific advice pertaining to
your particular situation. © 2004 Apex Personal
Loans Store. All Rights Reserved.
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