Can lender approve previously declined application?
You apply for a home loan hoping for a quick and painless approval, only to receive Statement of Credit Denial from the lender. You are disappointed and waiting for the credit report which you are entitled to precisely because your application was denied. You have to see it, after all your scores and history should have been more than good enough for a puny $150,000 you were trying to secure. Your very first mortgage application.
You got the report and instantly realize why the application was declined. But it doesn't make sense, the collection you never heard of and two late payments on American Express, the card you most certainly never had. The name on the report is yours and so is the street name, but certainly you never lived that far West of Hudson river. You keep on digging and finally discover the truth. Credit bureau messed the things up. It is someone else with almost identical social security number and last name which only differs by his Jr. suffix. Well, stuff happens, you can not really blame lenders and credit bureau updates everything so quickly after a very short dispute. You credit report looks fine and the house you were after is still waiting for you.
The question is now, can you the lender approve that previously declined application or you have to start the process anew? And the answer is yes, you must start anew. Once Statement of Credit Denial is issued to you, the deal is closed and you must resubmit the application. You will also get another hard inquiry but I would not worry about it too much.
Wed Sep 22, 2010 12:09PM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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