If you have a low credit score, getting approved for a mortgage can be challenging. But it's not impossible. In this article, we'll walk you through the steps you can take to increase your chances of getting a home loan despite a lower credit score.
If you've applied for a mortgage in the UAE and your application has been declined, it can be a frustrating experience. However, it doesn't mean that you won't be able to get a mortgage at all.
Here's what you can do if your mortgage application has been declined -
- Find out the reason for the rejection: The first step is to find out why your application was declined. This information can help you understand what went wrong and what you can do to improve your chances of getting approved in the future. Ask the lender for specific reasons for the rejection, and review your credit report to check for any errors or discrepancies that could have led to the rejection.
- Work on improving your credit score: If your credit score is the reason for the rejection, you can work on improving it. Pay off any outstanding debts, make sure you pay your bills on time, and try to keep your credit card balances low. It's also important to avoid applying for new credit until your score improves.
- Explore your options with multiple lenders: Just because one lender declined your application doesn't mean that all lenders will. Shop around and consider different lenders. You can also work with a mortgage broker. Holo's team is made up of mortgage experts. They will help you assess your options from multiple lenders and work with you to ensure you make your application for a mortgage loan with the lender most likely to approve you under your financial circumstances.
- Save for a larger down payment: A larger down payment can help lower the lender's risk and increase your chances of getting approved. If you can save up for a larger down payment, it can be worth the effort. Using a mortgage calculator can help you understand how much your mortgage amount may change with a larger deposit.
- Apply again in the future: If you've been declined for a mortgage, it doesn't mean that you won't be able to get one in the future. Give yourself six months after being declined for a mortgage before applying again. Use that time to work on improving your credit score and addressing any issues that led to the rejection, and apply again when you feel you have a stronger application.
While getting declined for a mortgage can be disappointing, it's important to remember that it's not the end of the road. By understanding why your application was declined and taking steps to improve your application, you can increase your chances of getting approved in the future.
At Holo, we understand how significant it is to get approved for a mortgage. That's why we offer digital mortgage services that help home buyers find the best mortgage deal within minutes for free. Our top mortgage advisors are always available to help you with your application and answer any questions you may have, or you can check out our mortgages FAQ resource.
Try out our mortgage calculator today and see how we can help you get one step closer to your dream home.