Why Was Our Loan Application Declined?
Question: We were recently turned down by a mortgage company. They said our application was “declined.” A second mortgage company located financing and we closed on our home last week. Just out of curiosity, why were we acceptable to one lender but not the other?
Answer: Most probably the first lender would have been elated to finance your home — that’s how it makes money. But, there are hundreds of loan programs out there and not every lender has access to every program. Because program qualification standards vary, it is possible that you qualified for a loan program not available to the first lender.
Your experience illustrates an important point. Before looking for a home, buyers should speak with as many loan sources as possible to identify the financing programs which best meet their needs.
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