How to Avoid Lender Rejection: 5 Ways to Get Approved
Do you know how to avoid lender rejection? Today, we show you 5 ways to get approved.
Because, rejection stinks any which way you look at it.
It can really stink when it comes from a lender.
It’s taken you months, but you’ve finally found a value-add property that you want to buy, renovate, and/or refinance (or all of the above). But no matter how hard you try, you can’t find a lender willing to help you out.
Well, guess what? You don’t have to experience the frustrating cycle of rejection any longer. No more searching and applying for loan only to get a big fat “NO!” Nope, that’s over!
Just follow these 5 tips:
Understand that lenders are different.
Understand that every lender is different. No two lenders will offer the same products or focus on the same types of customers. So, do your research before applying. Because Lender A might have what you need, but not Lender B.
Find out a lender’s focus.
Some lenders focus on first-time homebuyers, while some focus on commercial properties. You want to find a lender who’s focused on real estate investors.
Make sure a lender has options.
Some lenders have a very small, very strict list of requirements. Others are flexible and offer a variety of options. No taxes? No income? Iffy credit? Some lenders are okay with that. But many will need all those things. So, know what you bring to the table before you talk to lenders. The ones with more requirements will be more prone to rejecting you.
Know your numbers.
Knowing your numbers will help you know what your options might be. Your numbers include things like:
- Credit score
- Experience (real estate portfolio)
If you know this information, it will help you and your lender find the right loan for you.
Tell the truth.
Let a lender know if you’ve had a bankruptcy, maxed out your credit card, or missed a payment. Don’t be scared about doing this, because if you do, a lender WILL find out and they will lose all trust. And that means you might lose your loan.
Ready to chat? Great, our team is eager to help!