When the Bank Says No
A no from one lender is often a no from one set of guidelines, not the final word. Find your situation below for why it happened, what can fix it, what to ask, and a real deal we closed after another lender turned the buyer down.
What's standing in your way?
"My tax returns don't show enough income"
Denied a Mortgage While Self-Employed? Here's What to Do Next
A denial based on your tax returns usually isn't the final word. Lenders that qualify self-employed borrowers only on tax returns often understate what a business owner really earns, because write-offs lower taxable income and a two-year average can hide recent growth. First find out exactly why you were denied. If it was income, a bank statement loan, which qualifies you on deposits instead, may fix it. Before you reapply, ask for a side-by-side income analysis. It can be done before an application or a credit pull.
"My bank won't finance the property"
Bank Won't Finance a Property with Acreage, Barns or Horses? What to Do Next
When a bank won't finance acreage, barns or a horse property, the problem is usually the property, not you. Standard mortgage guidelines are built for typical homes, so ag zoning, large acreage, arenas, stables and outbuildings can fall outside the box even when your credit and down payment are strong. First find out exactly what the bank objected to. A loan built for rural property, such as a hobby farm or equestrian loan, may finance it as-is. Ask a lender to review the property before you order an appraisal.
"My buyer backed out before I closed"
Your Buyer Backed Out? How to Still Close on Your Next Home on Time
If the sale of your current property falls through while you're under contract on your next one, you can often still close on time. The usual fix is a bridge loan secured by the equity in the property you were selling, which provides the cash your sale was supposed to deliver. Move fast: tell your agent and lender right away, ask the seller about a short extension as a backup, and get a bridge loan reviewed the same week. In one Marion County case, a buyer walked away six days before closing, and a bridge loan funded in 9 business days.
"I need to close before my new job starts"
Need to Close on a Home Before Your New Job Starts? What to Do Next
You can often buy a home before your first day at a new job. Many loan programs let you qualify on a signed offer letter or employment contract with a set start date, before you receive a paycheck. If a lender told you to wait for paystubs, ask whether they offer future-income qualifying. Physicians and other medical professionals have the most flexibility through physician loan programs. In one Eugene case, a relocating physician closed 33 days before their start date.
Don't see your situation?
With 50+ loan programs, there's often another way. Tell us what happened and we'll show you your options, with no credit pull to start.
Licensed in Oregon & California · NMLS #1498678