Learning from Mortgage Rejection – Call to Action

Rejected borrowers should find out exactly why their loan application was denied, then try to remedy or work around the problem. Lenders are required to detail the cause for denial in a formal rejection letter.

In reviewing the letter, borrowers should keep in mind that the larger banks often have overlays, or tighter requirements, than the minimum qualification standards set by Fannie Mae and the Federal Housing Administration, said John Prom, the Manhattan branch manager for the Real Estate Mortgage Network. For example, the bank’s credit score cutoff might be higher than F.H.A.’s.

A borrower rejected by a big bank might be approved elsewhere. Mr. Prom recommends taking your application paperwork to an experienced loan officer for a second opinion. “Last year I picked up a couple of deals because some of the larger banks wouldn’t do 20 percent down on a two-family,” he said. “They wanted 25 percent down. We were able to do it for 20 percent.”

Read more at: http://www.nytimes.com/2013/10/27/realestate/learning-from-rejection.html?_r=0&adxnnl=1&ref=realestate&adxnnlx=1382830378-IokYGzXhYGHIFKWGwidsNg

Disclaimer: for information and entertainment purposes only

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s