Especially lately, homeowners everywhere are refinancing or getting mortgage modifications at record rates. The fact is though, that only around 10% of all applications will actually get approved. So, here is some help for homeowners who have been denied a mortgage refinancing.

-Homeowners everywhere are refinancing in order to get out of a bad home loan, bad financial situation, or save their home from foreclosure.

-Right now mortgage interest rates are at their near all time lows. Also, President Obamas “Making Home Affordable” plan offers new options to homeowners who want to refinance.

The first thing any homeowner should do after being denied a refinancing, is not take it personal. Most of the time, rejections are more a reflection of your situation, and not necessarily you. Applications will be rejected if, the lenders credit is bad, the home has lost value, or the loan to value ratio is too high. Many other homeowners are facing layoffs, reduced wages, or other financial problems which are hurting them. Any of these things can easily get a homeowner a rejection notice.

Make sure to carefully examine your credit report. If you find any mistakes, or have any questions, handle them right away. Even little blemishes on your credit report can disqualify you for refinancing in many mortgage lenders eyes. Also, make sure you pay down, or off, some of your smaller debts that have been lingering for awhile. These steps can improve your credit score, and a lot if errors are found.

Homeowners who have been rejected a mortgage refinancing should try again. This time, make sure you are able to meet the qualifications prior to applying for the refinancing.

-M Petrone

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