Usually, people think that because they have lots of assets, a high credit score, and a good income means that they will automatically be approved for a loan. Those people are not always correct, however. In some cases, even wealthy people are having a problem getting loans these days for all kind of reasons.
Usually getting a mortgage on a new property isn’t the problem; it’s refinancing or getting a second mortgage or a second home that really presents issues. Retirees are especially affected by this kind of rejection. Automatic approvals are not as common as they used to be because of new restrictions since the housing bubble, and people find that they are more often having to rely on their mortgage banker to help them get the deals that they want and need on their loans.
Income requirements are mainly the culprit; how do you know if you qualify? Ask your banker or broker if they understand the new rules of the modern loan system and how it has changed where you stand in terms of a loan. Make sure your broker or banker knows your special needs and has the skills and knowledge necessary to navigate the changing market with newer and harsher rules so that you get the best deal on your investment. Keep in mind that the days of a “one size fits all” loan program are long gone. In many cases the approval comes down to how well your mortgage professional presented it to underwriting and the knowledge of specific products to work with each clients unique situation.
