Darin Sewell asked:




Nothing is more frustrating then receiving word you have a declined mortgage refinance loan. Not being able to secure financing can make all the plans that you had seem to go right down the drain. But knowing the common reasons for loan denial can go a long way in helping to stop the potential problem before it starts.

Why Home Loans Are Declined

Home loans are declined because the underwriters at the lenders have decided your loan either did not fit into their lending guidelines or you were to risky a borrower. The underwriters act as a wall of protection for the lender so if something does not make sense to them they may either ask for clarification or deny the loan.

Common Reason For Loan Denial

One of the most common reasons mortgages get turned down is from borrowers giving false or inaccurate information. Many times this is done by accident. Even when done by mistake it is hard for underwriters to look past false information as it appears to look like potential fraud.

Wrong income levels are often stated on loan applications. The best way to avoid this is to go by last years income on your W-2. If you have had a raise and are hourly figure 40 hours a week as your base salary. Wrong income is the quickest way to get your loan terminated in underwriting.

Property values are another common reason mortgages get turned down in underwriting. People may tell their loan officer their home is worth a certain amount only to find out it is worth much less then they thought This is especially true today with the recent drop in real estate values in many parts of the country.

A credit score drop is also another common reason for losing your loan. One of the biggest mistakes people can make is to have multiple mortgage companies pulling their credit. While a few credit pulls will not hurt you having more then 4-5 credit pulls can start to damage your score. To avoid this stick with three reputable mortgage companies and get quotes from each one.

Adam

Janine Willits asked:




Falling behind on your mortgage loan? Perhaps recent episodes of losing your job, experiencing a loss in the family, or being overcome by illnesses may have put you in a less secure financial state. If so, it is a suitable time for you to consider modifying your mortgage loan.

In the fear of being rejected, most homeowners altogether abandon the thought of applying for modification plans. However, you should be pleased to know that such plans are also beneficial to the lenders. In fact, many mortgage companies are looking into handing out mortgage modifications as these raise the possibility that they get repaid by borrowers.

Prior to approaching your mortgage company to discuss potential terms, do a rundown on your cost of living first. What is the breakdown your finances for the past 6 months? Repetitive as well new finances, which include medical bills and other necessary major purchases, should be looked into. Preparing these pieces of information can enlighten you in choosing the modification plan that is best suitable for your financial condition.

Effectively presenting your financial hardships to your mortgage company can be a tricky task. However, there are several non-profit companies to refer to for help. Such companies, usually sponsored by churches or government groups, are intended to provide you with valuable information like the correct format in presenting your case to your mortgage company. Furthermore, these non-profit may have had prior work with your mortgage company. Thus, you can gain first-hand views on the procedure adapted by your company for loan modification.

After getting your information together, it’s time for you to contact your mortgage company. You may learn that they require you to accomplish an application form. These forms may be faxed or mailed to you by the company, downloaded from the company’s website, or acquired from their local office. You must also take note of all other documents needed to verify your application.

When you have accurately and completely complied with the requirements, it could take 2 to 3 weeks for the company to go over your application. When considered, your lender may opt to decrease you interest rates, increase the time for you to pay your mortgage, or put off your outstanding payment with the new adjusted amount. These modifications can then greatly help you in coping with your financial burdens. Start working on your loan modifications now and enjoy its long-term benefits.

Tammy

Huynh T asked:


I can’t pay my mortgage. I have 2 mortgage loans 80/20 at two different banks. Will that mortgage companies go after me if I forclose my home. Thank you so much for helpful answers. CA law please.

JASON