Category: Mortgage

What Happens if I Get Turned Down for a Mortgage: Steps to Take

A mortgage lender turning down your application for a home loan is disappointing. However, it’s not the end of your homeownership dreams.

To answer the question, “what happens if I get turned down for a mortgage?” we’ll cover the steps to take below.

Find Out the Reason for the Rejection

The lender will communicate the reasons for rejecting your mortgage loan application. Some common reasons include:

  • Recent changes in your employment situation. Changing jobs or leaving paid employment puts a question mark on your financial stability.
  • Credit-related problems. A low credit score marks you as a high-risk customer.
  • Excess debt. Your debt-to-income ratio will work against you if you  have too much debt.
  • Suspicious income. A sudden influx of cash to your account just before your application may leave the lender worried about the deposit source.

Once you find out the reason for the rejection, you can find ways to resolve it.

Improve Your Income

Where possible, you should consider additional ways to earn more money. Increasing your monthly income will assure lenders that you can keep up with your financial obligations each month.

Increase the Down Payment

When looking for answers to “what happens if I get turned down for a mortgage,” many people don’t consider the down payment.

Putting up a higher down payment on the house is a good way to lower the lender’s risk. If you can’t afford to do so now, give yourself a timeline and save up towards it.

Find a Co-Signer

A co-signer with a strong financial record will repay the mortgage debt if you can’t. Your loan applications may receive more favorable attention if you find a good candidate willing to take on the risk.

Shop Around

All mortgage lenders have their set template for reviewing loan applications. If one lender turns you down, the other might consider you a good candidate for a loan.

You can also look beyond banks and consider a lending company like Priority Lending LLC. We offer Tucson’s best mortgage rates.

Remember  to read the fine print when choosing other lenders after a rejection. The lenders will see the reasons for your earlier rejection and arrive at a similar conclusion. However, if they are going to process your loan, there may be a catch like higher interest rates

Wait a Few Years and Try Again

During the wait time, be sure to intentionally work on some of the reasons for your rejection.

Do you have too much debt? Work towards paying it down or seek debt help where possible.

Is your job situation fluid? Try to stay longer in a job for a few years.

While you wait, you should work toward improving your credit score. You can boost your score by:

  • Checking the reports for errors.
  • Paying down all your debt.
  • Avoid missing payment windows.
  • Use credit-building tools like a secured card.

Get Help with Your Mortgage

Now you know the answer to “what happens if I get turned down for a mortgage?”

Are you ready to apply? Learn whether to get a home loan from a bank or lender.

Call Priority Lending LLC today at (520) 231-1413 to discuss your mortgage needs in Tucson, AZ.

How To Get A Bigger Mortgage: Top Tips

At Priority Lending LLC, we help you get the money you need to find the house you want. Contact us today at 520-231-1413 to begin the process.

If you are in the market for a house, the size of the mortgage that you get impacts the kind of home that you can afford. To find the right home for your needs, we can help you get the best mortgage rates in Tucson from Priority Lending. Our skilled, experienced, and personable loan officers will be with you at every step of your journey and show you how to get a bigger mortgage.

Don’t Settle for a Single Quote

A good way to access the best mortgage quote possible is to get several of them simultaneously. Much like shopping around for a new car, going to more than one mortgage provider can provide you with a range of offers. You can enlist the help of your loan officer to pick the largest mortgage quote and the one that yields the best overall terms.

If you get several quotes, you can also use them as bargaining chips. In some cases, providers who offered you smaller amounts may change their tunes when they realize that you’ve been pre-approved for larger amounts. This approach may also result in a lower final interest rate.

Scale Up the Size of Your Down Payment

Borrowers wondering how to get a bigger mortgage can also consider increasing the size of their down payment. While it is possible to find lenders who will allow you to put down as little as 3.5%, if you’re able to put at least 20% down, you can often get a better rate. At the end of the day, this can result in a considerably larger loan.

Boost Your Credit Score

Your debt to income ratio (DTI) has a big effect on the size of the loan you can get. By improving your credit report, you can build your DTI, get larger loans, and receive better terms. This works especially well if you have a FICO score of 669 or lower.

You should always get copies of your credit reports before getting a mortgage. In some cases, reporting agencies make thousands of dollars’ worth of errors on your report, and you can raise your score by disputing these mistakes. Other ways to boost your credit score include:

  • Pay past-due credit card bills
  • Stop using the cards that you have
  • Avoid applying for new credit cards

Enlist the Help of a Cosigner

If you’re unable to boost your credit score significantly, getting someone with a high score to cosign is an effective strategy. Your lender will take the total income of you and your cosigner into account when underwriting your application. If your cosigner has good credit, this can result in a much larger mortgage offer.Here at Priority Lending LLC, we have a proven record of showing our clients how to get a bigger mortgage and how to succeed with residential and commercial real estate lending. Call us now at 520-231-1413 for immediate assistance.

mortgage questions to ask

5 Important Mortgage Questions to Ask a Lender

For most people, their home is the largest purchase they’ll ever make, and their mortgage is the largest loan they’ll ever take out. With that in mind, it pays to learn as much as possible about the lending process.

At Priority Lending LLC, we’re here to help aspiring homeowners on their way to finding the home of their dreams. We’re Tucson’s trusted mortgage lenders, and we understand the value of making informed decisions while securing a mortgage loan.

In this blog, we talk about five essential mortgage questions to ask when beginning your loan application. To get personalized answers to your mortgage loan questions, reach out to our staff today.

#1: What Down Payment Will I Need?

One of the most critical parts of the home buying process is the down payment. Ideally, lenders look for a down payment of 20% from most buyers. However, qualified buyers may be able to negotiate lower down payments, depending on their credit report, income, and other factors.

#2: What Will My Interest Rate Be?

Interest rates impact the overall sum of money you will pay for any property. For this reason, you must understand what your interest rate is and how it will affect the final price you pay for your home.

If you’re hoping for an adjustable-rate mortgage, make sure to ask how often the interest rate will be adjusted, what the maximum adjustment amount is, and other details before you agree to anything.

#3: Is Down Payment Assistance Available?

One of the most overlooked mortgage questions to ask during the lending process is about assistance. Buying a home is a significant investment that requires considerable resources, and help exists for those in need. Be sure to ask your mortgage lender about any down payment assistance programs in your area.

#4: What Will My Monthly Payment Be?

To help you prepare for life as a homeowner, make sure to ask your mortgage lender what your final monthly payment will be, the number of payments you will make, and other relevant questions.

Some lenders have specific policies regarding late payments, so ask about those factors before signing. Be sure to ask about early payment guidelines, too, as some lenders have restrictions on early loan repayment.

#5: What Other Closings Costs Will I Pay?

Finally, you should ask your mortgage lender about any additional costs you will pay at closing. Since down payments for buying a house can be hefty, it’s best to know how additional charges will impact your initial investment before proceeding with a loan application.

Some common additional closings costs include:

  • Property taxes
  • Loan origination fees
  • Discount points
  • Appraisal fees
  • Title searches
  • Surveys
  • Deed recording fees
  • And more

Get Expert Mortgage Guidance Today

Not all loan applications are created equal. Some home loan programs have regulations that dictate minimum and maximum interest rates, income-based eligibility, and more. Those seeking VA loans or other specialized home loans should coordinate closely with that organization during the application process. To learn what mortgage is best for you and other mortgage questions to ask during the lending process, reach out to our team at Priority Lending LLC today.

what happens if i get turned down for a mortgage

3 Common Mortgage Mistakes You Shouldn’t Commit

First-time homebuyers want to have their home loan paperwork accurate and in order. Even minor errors during the loan application and review process can result in higher interest rates, or worse, denial of your loan.

To ensure that your mortgage lending in Tucson from Priority Lending goes smoothly, keep these common mortgage mistakes in mind and do your best to avoid them. There are many mortgage mistakes, small and large, to look out for, but these are three of the most common you will encounter.

1. Failing to Check Your Credit Report and Credit Score

Any prospective mortgage lender is guaranteed to check your credit report and credit score.. You don’t want to be surprised by debts or errors there; a bad credit report or low score spells disaster for your loan application. You are entitled to one free check of each credit report to the major credit bureaus:

  • Experian
  • Transunion
  • Equifax

Go through your credit report and make sure everything is accurate.

Your credit score comes from your credit report, but you need to check that independently. Many credit-monitoring apps will provide your credit score for free, as well as monitor your credit reports for any unusual activity.

2. Buying More House Than You Can Afford

A common mortgage mistake is first-time homebuyers failing to factor in all home buying costs when calculating what they can afford. Your monthly mortgage payment is only part of the total monthly household expenses. Other expenses to factor in include:

  • Utilities
  • Property taxes
  • Maintenance and unexpected repairs

While you may qualify for a bigger home loan, buying a bigger home may not be a wise choice. Keep your monthly budget and expenses in mind when choosing a home, and avoid becoming “house poor” spending all your money on bills and home maintenance.

Keep in mind that your down payment is crucial for this budget. Not having a down payment can increase the likelihood of you struggling down the road. Consult your financial adviser or mortgage specialist to settle on the proper down payment to fit your budget and goals.

3. Choosing the Wrong Mortgage Loan

Once you know you are ready to move forward and apply for a mortgage, think about your home needs and finances. There are many types of mortgage loans, such as:

  • 15-year loans
  • 30-year loans
  • Fixed-rate loans
  • ARMs

Choosing the wrong mortgage loan could become a real burden in a few years, as many people discovered during the subprime mortgage crisis and the “housing bubble” collapse.

You need to read all the fine print and make sure you understand all the elements considered in a mortgage. From your debt-to-income ratio, to how a lender sets variable rates, to whether you can pay off your mortgage early without a penalty, you must consider all aspects as you shop for a mortgage loan.

When it comes to mortgage loans and home buying, there can be many mortgage mistakes along the way. Preparation, education, and sound advice are the keys to succeeding as you buy your first home. If you have questions about when to apply for mortgage loans, call the front desk at Priority Lending LLC at 520-231-1413 to learn more.

best time to apply for a mortgage

When Is the Best Time to Apply for a Mortgage?

The home buying process can be daunting. With several variables at play, it can be difficult to navigate the world of real estate. One of the most frequently asked questions we receive from potential clients is, “when is the best time to apply for a mortgage?” 

The time you apply for a mortgage can impact your chances of securing a mortgage loan. Priority Lending LLC experts are the leading Tucson, Arizona, mortgage lenders, helping thousands of people move into their dream houses each year. With over two decades of experience, our team can provide professional guidance to help you secure a mortgage for a home or investment property. 

Here is some more information on the best time to apply for a mortgage. 

When You Have an Exceptional Credit Score

To secure a mortgage loan, you should have an exceptional credit score. Lenders will look into your credit history to determine your reliability. 

If you have poor credit, wait to apply for a mortgage until you raise your score as close to 850 as possible. One of the positive things about credit is that your score is not permanent. You can improve your credit score by paying your bills on time, paying more than the minimum amount, and consolidating your debt. 

There are also several loan programs designed for people with low credit. Therefore, it may be possible for you to secure a mortgage loan without outstanding credit. Still, most of these programs require a score of at least 500 to qualify, and they carry a high interest rate. 

When You Have a Stable Debt-to-Income Ratio

Another thing that mortgage lenders look for is your income status. Even with an exceptional credit score, lenders will not trust you without reliable monthly or annual income. 

You can prove your income by submitting tax return statements or a verified letter from your employer. Typically, mortgage lenders will ask for several years’ worth of tax returns during the application process. 

Also, job security is another metric mortgage companies use to determine your reliability. Most lenders like to see you at a job for at least two years before approving you for a loan. 

When You Have Enough Savings 

Another factor you must think about when applying for a mortgage is if you have enough money for a down payment. Standard mortgage loans require that you put down 20% of the loan upfront. 

If you do not have enough savings to cover the down payment and closing costs, lenders may be wary of working with you. 

The more you pay upfront, the less your monthly loan payments will be. It is always wise to have enough savings to pay for at least 20% of the loan amount before you buy a house. 

Apply for a Mortgage 

We hope we provided an answer to the question, “when is the best time to apply for a mortgage?” 

Priority Lending LLC proudly serves the Tucson community with expert mortgage services to secure your dream home, vacation property, or commercial building. We use the best software and have constant access to the loan originator. 

If you want to inquire about our mortgage services, call the Priority Lending LLC front desk at 520-231-1413.

For more loan information, here is how you can learn whether to get a loan from a bank or a lender.