What To Do When You’re Turned Down For A Knoxville Mortgage
Owning a home is part of the American Dream.
While this dream has evolved with each generation, it’s still something that is extremely important to all Americans. Nowadays, many first time buyers are buying homes later in life than other generations, but still, buying homes is very important to millenials.
Unfortunately, there are times where this dream can be quickly shattered by a mortgage denial. For many first time buyers, this can be an earthshattering experience.
If you’re a first-time buyer who has been turned down for a Knoxville mortgage, it’s important to know that it’s possible to conquer whatever issues are holding you back. You may also find that whatever stopped you the first time around may not all that hard to fix.
In this post, we’ll cover what happens if you’re turned down for a Knoxville mortgage and what to do if you’re turned down.
First: Why Do Some Loans Get Denied?
Mortgage applications get denied for a range of reasons. Besides home inspection issues, it is a common reason why real estate transactions fall apart.
While the reason for the denial can be largely dependent on a borrower’s situation, there still are a few common reasons why a mortgage tends to get denied.
Here are a few of the common reasons why mortgages get denied:
- Change in employment
- Changes in income
- Changes in credit score
- Changes in debt(s)
- Job loss
These are the most common reasons why loans are denied. But it’s important to note, that every borrower is different. For some borrowers, a small change in a credit score will not hurt their loan approval. But for those with borderline credit, it can be the difference between loan approval and loan denial.
What Should You Do After Your Knoxville Mortgage Is Denied?
When you get denied for a Knoxville mortgage, it’s important not to panic. Oftentimes, when a mortgage is denied, there are ways to resolve the issue.
So first and foremost, if you get denied, it’s important not to give up. In every situation where a loan is denied, there is a reason and a way of fixing it. The most important thing to figure out is why you were denied and what you need to do.
An experienced, trustworthy loan officer should be able to advise you on what you need to do next. He or she can help you concoct a plan for what steps you need to take. In many cases, resolving these issues is quicker and easier than you may think. You may need to work on eliminating debt or increasing your credit score.
Once you know what you need to do, stay focused. Resolving the issues that caused your loan denial can take some time. It’s important to remember the end goal and not get frustrated.
Communication Is Key
There are some situations though where things are out of your hands. You may lose your job, get a promotion with different pay, or find yourself in a situation where changes to your check are unavoidable.
When that is the case, it’s important that you communicate with your loan officer. This can sometimes help the situation. When a loan officer is able to prepare for a potential curveball, there is a chance that they can ultimately save the loan.
Conclusion: Denial Isn’t Final
When you get denied for a loan, it’s important to not give up. With a little work, you’ll be able to clear up whatever issues you’re facing that prevented you from getting a loan in the first place.
Find a loan officer who can help provide you with the information you need to qualify for a loan and stay focused on the end goal of buying a home.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.