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John Reinhardt Greater Atlanta & Surrounding Suburbs' Blog

By John J. Reinhardt | Agent in Johns Creek, GA

Tightening credit standards for home buyers - John Reinhardt Solid Source Realty

With the tightening of credit standards, more home buyers are finding themselves rejected when they go to apply for a loan. But after just one rejection, lending experts say buyers shouldn’t give up — they may still be able to qualify for a home loan if they keep trying. But buyers shouldn’t give it another try until they take a close evaluation of why the original application was turned down in the first place, and find ways to address those issues in their second or even third attempt, Marisol Torruella, a loan originator told The New York Times. Applicants can, by law, find out why they were rejected for a loan application. The Equal Credit Opportunities Act requires lenders within 30 days to give applicants, in writing, the specific reasons why they weren’t given a loan. For some rejected borrowers, they may need to save up for a larger down payment or take steps to improve their credit score. Some applicants may find shopping around for other lenders can help, as well as discussing additional alternatives with their lender. Applicants might also find a better option is a loan from the Federal Housing Administration, which have less stringent requirements, but some surveys show that most borrowers aren’t aware of FHA loans. Source: The New York

John Reinhardt

Solid Source Realty


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