Answers · Buying a home
I got a no from my bank. What are my options?
A no from one bank is one lender's answer under one set of guidelines. It is not the market's answer. The next step is to find out exactly why: income that did not fit their form, a credit issue, a property type they do not lend on, or a down payment source they would not accept. Each of those has a different path, and some of them have a short one.
Written by Andrew Malm, Senior Loan Originator, NMLS# 2663426. Last reviewed .
Banks lend their own money under their own rules, and the rules are built for the easiest files. Steady W-2 income, strong credit, a standard house. If you are self-employed, paid on commission, buying an unusual property, or carrying a credit scar from a bad year, their form may simply not have a box for you.
A broker works across many lenders, and lenders differ more than people expect. One counts your bonus income after a year, another wants two. One lends on a condo project, another will not touch it. One reads bank statements instead of tax returns. The job is knowing who fits.
Sometimes the honest answer is "not yet". A credit score that needs a few months of work, or a down payment that is still short. I would rather tell you that with a plan attached than let you keep applying and collecting credit pulls.
I have been on the other side of this. Ten years ago a bank told me no on my own home. A broker found the yes with the same numbers. That is why I do this.
What I'd do
- Get the reason for the no in writing. Lenders have to tell you.
- Do not apply at three more banks in a row. Talk to someone who can shop the file once.
- If the answer is not yet, ask for the specific list that turns it into a yes.
Have a situation that does not fit the article? That is most situations. See your options or text me at 763-373-9360.
One conversation changes the picture.
Seeing your options is free, with no hard credit pull to start.