Can You Be Denied a Mortgage Renewal?
Most people don’t think much about their mortgage renewal until they get a reminder in the mail from their financial institution that their renewal is coming up. But the truth is that mortgage renewal should be something that is always in the back of your mind because while most renewals get approved without too much difficulty, it is possible for a renewal to be denied.
Why would a lender deny my mortgage renewal?
There are actually a few reasons why a lender might decide against renewing you mortgage, but the main reason would be if you missed or were late with payments on your current mortgage. For this reason, you should always be diligent in making your mortgage payments in full and on time. Otherwise, you could find yourself scrambling to find another lender come mortgage renewal time.
Other reasons why a lender might deny a mortgage renewal have to do with your overall financial health. If you have recently racked up a lot of debt, lost your job or defaulted on other loans, your current lender will no doubt see these as red flags – and if the situation is serious, they may decide to deny your renewal.
So in addition to making your mortgage payments, you need to be careful to pay your other creditors as well. And if you are making a major purchase such as a car, boat, etc. you would be wise not to do this too close to your mortgage renewal time.
What happens if I do get denied for a mortgage renewal?
As you get closer to your mortgage renewal date, you will want to find out as soon as possible whether you are going to qualify again with your current lender. If you do qualify, you will want to have time to compare the rates of other lenders to see if you can get a better deal. If you don’t qualify, you will need time to find another lender.
If your current lender denies you for a mortgage renewal, you should get in touch with your mortgage broker as soon as possible. Mortgage brokers work with a wide variety of lenders and they are your best chance of being able to find a lender who is willing to work with you.
If you have more questions about mortgage renewal or if you have been denied renewal by your current lender, don’t wait! Contact Matrix Mortgage Global today.