Home & Mortgage
Sometimes, finding the best loan offer isnt the end of the lending process... after you fill out your loan paperwork and submit your final application, your loan comes back as being denied. It may seem like youre not going to be able to get the money that you need, but thats not true; its simply going to take a bit more work on your part to find another lender that will approve your loan. In order to do so youll have to revisit old loan quotes, contact other lenders again, and put a little bit more effort into finding the lender thats really right for your needs.
So that you dont have to start the process from scratch, here are a few pointers to help you along your way.
Reconsider Old Quotes
The first thing that you should do when youre denied a loan is to begin looking at old loan quotes again to determine which ones are the best. Obviously, you have already applied for the loan that was the best overall from the quotes that you had received, but there is a good chance that some of the loan quotes were relatively close to the one that you had originally decided upon. You should choose the best three or five quotes from those remaining, setting them aside so that you might investigate them further. The remaining quotes can be kept if you choose, though its likely that you wont need to go through all of them to find the lender that will grant you the loan that you want.
Contact Lenders Again
Once youve determined which loan quotes are the best out of those that remain, its time to contact the lenders that originally made the quote again. Explain that youre still looking for a loan and that you had received a quote from them previously, and confirm the interest rates and loan terms that they had previously offered you. Interest rates may have changed slightly, but theres a good chance that youll be able to get a new quote that is close to the original if they have.
Once youve confirmed that the lenders are still wanting to potentially do business with you using the rates and terms that they had quoted you before, then you can move on to the next step in trying to get one of them to issue you a loan.
In order to avoid the hassle of applying for your loan and then waiting for a decision, ask the potential lenders if they offer pre-approval on their loans. The pre-approval process means that they go ahead and run a credit check and make the pertinent approval decisions before your final application is processed. This means that youll know beforehand whether or not youll be able to get the loan, and if the lender isnt going to be able to grant the loan then it will save both you and them quite a bit of money.
Its important to make sure that you dont request pre-approval on too many loans at once, however, because having a large number of inquiries made on your credit score at one time can actually have a negative effect on your credit.
Make sure that youve narrowed down the lenders sufficiently to the ones that you want to try to get a loan from, and ask fro pre-approval from there.
Should you not be able to get an approval at this point, you might want to reconsider your loans collateral, and look at a few new lenders that specialize in your type of loan.
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About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
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