Sometimes, finding the best loan offer isn't the end of the
lending process... after you fill out your loan paperwork and
submit your final application, your loan comes back as being
denied. It may seem like you're not going to be able to get the
money that you need, but that's not true; it's simply going to
take a bit more work on your part to find another lender that
will approve your loan. In order to do so you'll have to revisit
old loan quotes, contact other lenders again, and put a little
bit more effort into finding the lender that's really right for
So that you don't have to start the process from scratch, here
are a few pointers to help you along your way.
Reconsider Old Quotes
The first thing that you should do when you're denied a loan is
to begin looking at old loan quotes again to determine which
ones are the best. Obviously, you have already applied for the
loan that was the best overall from the quotes that you had
received, but there is a good chance that some of the loan
quotes were relatively close to the one that you had originally
decided upon. You should choose the best three or five quotes
from those remaining, setting them aside so that you might
investigate them further. The remaining quotes can be kept if
you choose, though it's likely that you won't need to go through
all of them to find the lender that will grant you the loan that
Contact Lenders Again
Once you've determined which loan quotes are the best out of
those that remain, it's time to contact the lenders that
originally made the quote again. Explain that you're still
looking for a loan and that you had received a quote from them
previously, and confirm the interest rates and loan terms that
they had previously offered you. Interest rates may have changed
slightly, but there's a good chance that you'll be able to get a
new quote that is close to the original if they have.
Once you've confirmed that the lenders are still wanting to
potentially do business with you using the rates and terms that
they had quoted you before, then you can move on to the next
step in trying to get one of them to issue you a loan.
In order to avoid the hassle of applying for your loan and then
waiting for a decision, ask the potential lenders if they offer
pre-approval on their loans. The pre-approval process means that
they go ahead and run a credit check and make the pertinent
approval decisions before your final application is processed.
This means that you'll know beforehand whether or not you'll be
able to get the loan, and if the lender isn't going to be able
to grant the loan then it will save both you and them quite a
bit of money.
It's important to make sure that you don't request pre-approval
on too many loans at once, however, because having a large
number of inquiries made on your credit score at one time can
actually have a negative effect on your credit.
Make sure that you've narrowed down the lenders sufficiently to
the ones that you want to try to get a loan from, and ask fro
pre-approval from there.
Should you not be able to get an approval at this point, you
might want to reconsider your loan's collateral, and look at a
few new lenders that specialize in your type of loan.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the www.directonlineloans.
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