Banks Turned You Down?
Moving on After the Bank Turned You Down
If a bank turned down your request for a loan, it might seem like all hope is lost. In reality, however, the path before you isn’t as tough as you think. You’ll just need to investigate alternatives if you want to end up ahead of the game.
Mortgage Application Essentials
Why did the bank turn down your lending application? Contrary to popular belief, it doesn’t always come down to stingy loan officers with personal grudges. Financial institutions can turn down lending requests for many valid reasons, such as when borrowers
- Lack good credit standing because they already have many loans, a track record of late payments or other bad marks in their history,
- Have credit scores that fall outside of a specific range,
- Ask for more money than they qualify to receive,
- Want to use the money for investments that banks deem too risky, such as fixer-upper houses or rental properties in certain areas, or
- Insufficient Income
How Lending Regulations Make Banks Stricter
When you seek a bank loan, your would-be lender uses a complex formula to determine whether you’re eligible. If you fall short, then you might be denied outright. Some lenders are willing to work with you to help you identify products or terms that you can obtain, but these providers may be the exceptions to the rule.
Financial institutions like banks have to adhere to various laws at the national, state and local levels. These regulations are designed to fulfill many purposes, including protecting consumer borrowing rights, minimizing market fallout from bad investments and stopping fraud. If they want to operate legally and gain the favorable interest rates, tax breaks and other advantages that they enjoy, banks have to be sure that their lending practices adhere to the rules.
Could such standards have impacted your loan eligibility? Different loans and lenders have distinctive standards, so knowing the rules of each might just save you a lot of heartache.
Bouncing Back After the Bank Turned Down Your Application
Want to get your life back on track after being turned down by a bank? As private lenders, we aren’t bound by the same rules and regulations that stop traditional institutions from serving your needs. We base our loans on the value and equity of your home and that’s all. Contact Alexa Capital Corp. today to learn more.