Getting declined for a mortgage renewal with existing lender can be embarrassing. A better idea to avoid such a situation is to consider switching over to a new mortgage provider. However, you need be aware of the exact process to get approved with another lender. Little need to worry even if you are denied mortgage renewal. We can help you.
Before it is time to renew your current mortgage for an extended term, it could be vital for you to first decide whether you want to keep staying with your present lender. Besides, it is important you fully understand the implications of your decision, as it will affect your options.Get Quick Approval
If you have been current on mortgage payment throughout the entire term, there are fewer chances that your existing lender will deny your mortgage renewal application. Nevertheless, if you have missed some payments because of job loss and your credit has taken a dig then the probability of a mortgage renewal denial increases considerably. The main advantage of renewing home mortgage with present lender is that you do not have to re-qualify, as will be the case with a new lender. Signing renewal notice sent by your present mortgage loan dealer will ensure that your mortgage will most probably be renewed.
In addition, if you decide to renew mortgage then existing lender will review overall state of your finances and your volume of debts will come under scrutiny. Your present lender will assess your financial ability to repay debt and affordability of monthly payments especially if you are without a job. If your finances turn out to be a matter of concern then lender may deny your mortgage loan renewal application. There is no guarantee that new lender will grant mortgage renewal either as it will involve re-qualification process. New mortgage lenders might not be aware of your exact financial situation.
They may have certain credit score requirements and might verify your income. If you are unemployed and your credit profile has been damaged then there is every chance that the sailing will not be smooth. In fact, even a new lender may deny your mortgage renewal request. Still, it is recommended that you shop free proposals from other lenders and compare them when your current mortgage is up for renewal. To make an informed decision, it could be advisable for you to consult one of our competent local mortgage consultants for a free evaluation of your case.