Getting a decline for a mortgage can be very frustrating. You’ve been dreaming of owning your own home, shopping around for the perfect mortgage deal, and suddenly…bam! If you receive the news that your mortgage application has been declined there are things you can do. Cue the dramatic music! But fear not, intrepid homebuyer! In this blog post, we’ll dive into what to do when faced with a mortgage rejection. And hey, we’ll sprinkle in some humor to lighten the mood because laughter is the best medicine, even when dealing with mortgages!

Even when faced with mortgage rejection, keep writing your homeownership dreams down. The journey may have bumps, but your determination will lead you to success.

Planning to take a break:

1. Don’t Panic, Grab a Cup of Tea (or Coffee): When that “declined” email lands in your inbox, it’s natural to feel a rush of emotions. Take a deep breath, step away from the computer, and make yourself a comforting cup of tea (or coffee, if that’s more your style). This little break will help clear your mind and give you the energy to tackle the next steps. Try this quick mindfulness video.
2. Playing Detective – Uncover the Why: The key to turning your mortgage misfortune around lies in understanding why your application was rejected. Was it because of your credit score, employment history, or perhaps some other mysterious reason? Channel your inner Sherlock Holmes and get to the bottom of it. Reach out to your mortgage broker or lender and ask for feedback. Once you know the reason, you’ll have a better idea of what to focus on next.
3. Repair Your Credit – Time to Break Out the Toolkit: If your credit score played a significant role in the mortgage decline, it’s time to put on your tool belt and start repairing it. Paying off outstanding debts, ensuring all your bills are paid on time, and avoiding applying for new credit help. Thinking of it as a DIY credit makeover project that will help boost your chances of getting approved in the future.
4. Save, Save, Save – Penny Pinching Never Felt So Good: While you’re working on repairing your credit, it’s also an excellent time to save up some extra cash. Lenders often appreciate a robust savings account as it demonstrates your financial stability and ability to handle mortgage payments. So cut back on those fancy dinners out, skip the pricey vacations (for now), and channel your inner money-saving ninja.

Not ready to quit trying:

1. Seek Professional Guidance – The Wise Sensei of Mortgages: Remember that mortgage broker you initially approached? They are your secret weapon in this homeownership quest. Mortgage brokers have extensive knowledge of the lending landscape and access to various lenders and loan products. They can analyze your situation, suggest alternative options, and guide you towards the right path. Think of them as your wise sensei, leading you to mortgage success. Remember different lenders have different policies. There are also different levels of lenders as you can read here.
2. Learn from Rejection – Embrace Your Inner Yoda: As Yoda would say, “The greatest teacher, failure is.” Take the lessons learned from your mortgage rejection and apply them to improve your future chances. Maybe it’s time to reassess your budget, reconsider the type of property you’re aiming for, or even seek advice on how to better present your financial situation. With each setback comes an opportunity for growth and improvement.

Being declined for a mortgage can feel like a temporary detour on your path to homeownership, but it’s not the end of the road. Armed with resilience, humor, and a dash of Sherlock Holmes’ detective skills, you can bounce back stronger than ever. Repair your credit, save diligently, seek guidance from your mortgage broker, and learn from the experience. Remember, the perfect mortgage match is out there, waiting for you to charm it into approval. Good luck on your mortgage journey, and may the force be with you!