Apply Again for a Mortgage Refinance After Denial, Rosemary Rugnetta, Freerateupdate.com


Despite what has been heard about the mortgage market for the past several years, it is not all gloom and doom for everyone. More homeowners are not underwater than there are those that are underwater. Even today, mortgage refinance applications are still up and providing existing borrowers the opportunity to obtain the current lower mortgage rates available. Applying again for a mortgage refinance after receiving a denial is a must for existing homeowners since there is a good chance for approval.

Many borrowers are or have been denied a mortgage refinance for some reason or other. The denial is often the result of a particular lender’s guidelines that were in place at the time of the mortgage refinance application. Lenders have what are called overlays for conforming mortgages which are additional guidelines on top of those issued by Fannie Mae and Freddie Mac. These are called the matrix in the lending world and differ from lender to lender. Each mortgage is approved or denied according to the matrix for that particular mortgage product. For this reason, when a borrower is denied by a lender, it should not be their final attempt. However, running from lender to lender is also not a good idea since each one will probably make a hit to the credit report which can ultimately damage the borrower’s credit scores. By inquiring for information online without using a social security number, the borrower may be able to find a lender who is able to help them. It is a much easier and efficient way of searching for help and more likely that the borrower will find success.

In some cases, it may very well be impossible at this time to refinance. Finding out the reason is important because it could be related to something on the credit report which the borrower can work on improving so that in several months they may be able to apply again for a mortgage refinance after receiving a denial. Whatever the reason is for being turned down, success is still a real possibility.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

The Home Loan Application, by Jason Hillard , Homeloanninjas.com


Applying for a home loan is quite a process. A good place to get familiar with the process is the home loan application. I made a video awhile back showing the different sections of the loan application:

Some things to know when you apply for a home loan:

  • Detailed residence history for the last 2 years
  • Detailed employment history for the last 2 years
  • Knowledge of your various bank accounts, retirement accounts, and other liquid assets
  • Social Security number
  • A good idea of your credit history – dates of bankruptcy discharge, etc

Obviously, there’s more to it than that. But those items might be things you wouldn’t usually think about. It helps to have the following put together when you fill out the loan application:

  • Most recent 30 days of paystubs for all borrowers
  • Most recent bank statements; all pages, all accounts
  • Most recent retirement or 401k statements
  • Last 2 years Federal tax returns; all pages, with w2s
  • Business tax returns if applicable
  • Divorce decree/child support paperwork if applicable
  • Award letters for Social Security/VA/Disability if applicable
  • Pension letters/Annuity statements if applicable
  • Bankruptcy Discharge paperwork if applicable

That sounds like a lot of stuff to put together, but the truth is it will help your Mortgage Professional put your application together, and the underwriter will need to document and verify all of those items anyway.

You might as well begin prepared.

For more information about the home loan application, and a copy you can download and get familiar with, check out my website. I try to provide valuable information about home loans in Oregon and Washington, rather than empty sales pitches. Thanks!

Picture: Jason Hillard

Jason Hillard – homeloanninjas.com

Mortgage Advisor in Oregon and Washington MLO#119032

Pinnacle Mortgage Bankers

a div of Pinnacle Capital Mortgage Corp

503.799.4112

jason@mypmb.us

1706 D St Vancouver, WA 98663

NMLS 81395 WA CL-81395

Equal Housing Lender