Real estate loan: how to react to a refusal?
The requirement of credit organizations is not a legend: they are uncompromising with incomplete or weak loan application files. This refusal should not lead to discouragement, but to a better constitution of the file and the refinement of its purchase project. Here are some keys to understanding the refusal of a mortgage to better answer it.
Understand the reasons for refusal
When an individual files a claim for a mortgage loan application, he must prepare for a refusal because many criteria come into play: financial first, but also administrative. Especially since the lending institutions are sometimes not very precise about what exactly they expect, so sometimes you have to do it several times. Do not panic, however: you can clearly identify the elements that have tilted your bank. In addition, do not hesitate to ask clearly what is wrong.
For some institutions, it is the personal contribution that is lacking, the salary that is not regular enough or the amount requested that is too high. In this case, do not hesitate to go to another lending institution that may be more flexible. Be careful, however, always to address institutions that have proven their seriousness.
In other cases, it is simply an incomplete file, the presence of another credit to repay or a lack of mortgage guarantee. This type of problem can be solved more easily than a lack of input.
In any case, at each refusal it is important to claim a certificate of denial of credit to his bank in order to cancel his trade agreement without having to pay penalties.
Prepare a new, better-praised file
Once the cause (s) of the refusal is (are) identified, every effort must be made to resolve the problem quickly in order to be able to submit a new file and obtain a home loan in a timely manner. Applying competition by establishing a market survey can help find the lending institution that meets the criteria of the individual more quickly.
Note that apart from banks known to all, some institutions are specialized in mortgage lending and therefore have more expertise in the field. In addition, it is possible to contact a mortgage broker who will take charge of the file to find the best rate.