Turning around a 'declined'

The worst thing you can do when it comes to financing is to follow what we call “A trick or treat” approach to shopping for a loan.

 

What we mean by that is knocking on various lenders’ doors by submitting your application to several simultaneously or one after the other if it gets declined.

While shopping around is very important, doing it in the manner described above will not only hurt your credit, if each of those lenders pull a credit report on you, but will also waste time if you are not 100% sure that you are submitting to the right lender.

There are better ways to shop the deal and increase your chances of getting approved.

 

If you have been declined by the lender

Ask for the reasons behind the decline and discuss any misunderstanding that may have occurred and contributed to the decline and if there is anything to do about it. It is worth it to take this step first before taking your application somewhere else.

 

Before you submit / resubmit your application

Before you submit or resubmit your application after a decline to the next lender, you need to speak with a lending advisor that specializes in financing rental properties and who has access to multiple lenders in that area. Discuss your story with the advisor, including your financial situation, investment strategy and provide him/her with information about the deal at hand and the reasons your deal was declined ( if any).

Your advisor will be able to package your deal and with her/his understanding of the various lenders’ policies, areas of strength/weakness and your investment goals, he/she will be able to submit your application to the right lender and increase your chances of approval.

 

Relationships Matter

Do not underestimate the power of relationships to the success of your investment career.

Selecting the right lending partner early in your investment plan is key to getting approved and continuing to get approved.

Look for a track record and specialization in financing real estate investments as well as access to various lenders and/or products that are tailored to your specific situation and investment strategy.

Take the time to educate your partner about your goals and investment plan from the get go and discuss with him/her the financing plan for any deals that come your way early on and before committing to an offer.

Your lending partner acts as your sounding board, reduces the hassles associated with shopping around for a loan and can direct and educate you on how and what to do with your application.

With their understanding of the various lending products out there, their lender relationships and market knowledge they will know what works or doesn't early on in the process and before submitting your application.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Investment Hot Spots:
Galahad, Mulgrave, Bellevue, St. Peters Junction, Big Lake

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?