When you want to get a pre-approved mortgage but the loan is denied, there are a number of possible reasons why this might happen. It may be that your credit is just not good enough and in these economic times that it is very difficult to obtain credit of any kind. Also, banks look at you as someone who is high risk, they don’t really care what your actual credit rating is and if they do, it is probably not the best one. These are the main reasons why someone who is looking to get a pre-approved mortgage but is denied is going to have trouble after this.
Pre Approved Mortgage But Denied Loan
If you have bad credit, then it is very likely that you will be refused a loan. It may seem like a really bad thing to be told no to a loan, but in most cases, banks and financial institutions will not take the risk on someone with bad credit. It is actually much better for them to take the chance on someone with good credit and therefore they make money from their high interest rates. Also, if they do approve you, they will often overcharge you on the loan because they made a lot of money on the deal. This has happened to me and I know that it is a lot easier to get a mortgage with poor credit than it is to get a mortgage with good credit. The only way that I was able to qualify for a mortgage with bad credit was by getting a cosigner.
A cosigner can help you get a pre-approved mortgage because they take on the risk of the loan by putting their name on it. The cosigner will be responsible if the borrower defaults on the loan. The only problem is that sometimes, the cosigner’s credit isn’t that good and the bank will still try to get the loan. They do this because if they don’t get their money back, then they have to pay back the lender and this means that they are going to overcharge them. Also, the cosigner is responsible if the borrower doesn’t pay and is turned down for the mortgage because of the poor credit.
A good thing to do if you have a bad credit score is to go online and see what type of mortgage you can find. There are pre-approved lenders that specialize in bad credit mortgages. Then, you will need to apply. Keep in mind that you will likely have to pay a higher interest rate than a person who has good credit. So, this might be an option that you want to consider.
If you have a credit score under 500, you will probably have to go through a credit bureau dispute process. This can be quite a pain, but if you don’t have a good enough credit score, then this could be a possible option for you. You can learn more about your mortgage options such as no doc mortgage, no credit check refinance and so forth by visiting the website Bad credits mortgage.
You can also look at getting a cash advance on your mortgage. Sometimes, lenders will offer this as a form of pre-approved mortgage. However, this is risky. If you have a cash advance, make sure that you pay it back on time. It is not a good idea to get into this type of debt for a long period of time.