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CHAPTER IX -- TURNED DOWN? TURN IT AROUND

LESSON 19: WHAT IF I GET TURNED DOWN?

You've gotten all your ducks in a row, filled out your application and thrown yourself at the mercy of the mortgage lending gods. But what if they aren't happy and they send your application back with a big red "DENIED" stamp on it?

In most cases, you're not completely out of luck. You may be able to get a loan; it just might cost more and not be the conventional mortgage you were hoping for. After all, mortgage lenders want your business and most will come back with different mortgage options that will fit your budget.

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First, though, let's look at what you should do if your conventional loan application is denied outright:

Find out why. The lender has 30 days from your submission of a completed application to explain in writing why the loan was turned down. You will receive an "adverse action notice" stating a specific reason for the denial. The notice will also tell you which federal agency to contact if you think the lender or mortgage broker has illegally discriminated against you. See Tips

Request a second opinion. Some lenders have a second level of review for loans. You might be able to qualify if you can convince the lender that there was, say, a legitimate reason for that bankruptcy filing two years ago (for example, your wife was in the hospital for several months and the medical bills ruined your finances).

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TABLE OF CONTENTS

CHAPTER I
  Lesson 1
  Quiz

CHAPTER II
  Lesson 2
  Quiz

CHAPTER III
  Lesson 3
  Lesson 4
  Lesson 5
  Quiz

CHAPTER IV
  Lesson 6
  Lesson 7
  Quiz

CHAPTER V
  Lesson 8
  Lesson 9
  Quiz

CHAPTER VI
  Lesson 10
  Lesson 11
  Quiz

CHAPTER VII
  Lesson 12
  Lesson 13
  Lesson 14
  Quiz

CHAPTER VIII
  Lesson 15
  Lesson 16
  Lesson 17
  Lesson 18
  Quiz

CHAPTER IX
  Lesson 19
  Quiz

CHAPTER X
  Lesson 20
  Quiz

CHAPTER XI
  Lesson 21
  Quiz

CHAPTER XII
  Lesson 22
  Lesson 23
  Lesson 24
  Quiz

CHAPTER XIII
  Lesson 25
  Lesson 26
  Lesson 27
  Quiz

CHAPTER XIV
  Lesson 28
  Lesson 29
  Lesson 30
  Quiz

Definitions





RELATED STORIES

Options for people with bankruptcies on their records


Hard money' lenders: The source for last-resort loans


It's buyer beware when shopping for a subprime loan

 
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