All Loan Officers are not the same

Don't assume just because one lender denies your loan, all will.

Forward from CAR:

After a rejection
Some borrowers think that because their mortgage application is turned down
the first time, they won't ever be approved. In reality, some borrowers
succeed on the second or third attempt, usually with a different mortgage
professional, and often several months later, after they have saved more
money for a larger down payment or improved their credit score.

Making sense of the story

* Before reapplying for a mortgage, borrowers are advised to look at
the reasons they were initially rejected.
* The Equal Credit Opportunities Act requires lenders to give loan
applicants specific reasons in writing within 30 days of their decision. If
it's based on a problem in the borrower's credit report, the lender must
tell the borrower the name and address of the credit agency that provided
the information.
* Talking to the loan officer who denied the application to see how
close the borrower was to being approved also can be helpful. Sometimes the
gap is small and could be bridged with a larger down payment or another home
appraisal, for example.
* It also may be worthwhile to shop around for other lenders.
Borrowers can work with a mortgage broker or an online network like
LendingTree or Zillow's Mortgage Marketplace.
* A credit union also might be a better bet for some applicants.
Credit union loan committees may permit better deals for longtime members;
they might also modify loan terms for borrowers they already know.
* However, first-time buyers may need to scale back their aspirations.
One reason people get turned down for a mortgage is because they try to buy
more property than they can afford based on current incomes.
* Applicants also should look at ways to strengthen their financial
picture. If a borrower's credit is poor, paying down credit-card balances
can help to increase a FICO score.

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- sunil