Welcome back to more information. We have covered the first two reason and now we are ready for the third. Another reason that people are declined is because of the equity on the property. The amount that a bank is willing to loan on your property depends on how much the property is worth. If you have little equity on your property, your bank might ask you to reduce the loan or decline your application. Who detemines how much your property is worth? You can go on Zillow or Trulia to get a general idea. Those sites will also tell you what an equivelent property sold for last. To get an exact idea, you will need to get the house appraised. The appaiser will take a look at the property and also comps on what has sold in the area. An appraisal can differ with companies, but is generally the same. An appraisal is around $500 to $700 depending on how in depth they get.
When you are looking to refinance, you should take a look around the house and do any small repairs that can be done. You also want to do the little things that can make a big difference. Buy some flowers for the yard. Put air freshners around the house. First and foremost is to make sure the house is picked up and CLEAN! Do not leave dirty laundry on the floor or dishes on the counter. Think about what you would be looking for if you were buying a house and make those corrections. A little effort can go a long way in getting the house appraised.
We will cover another reason why people are declined a mortgage next time. Thanks for reading. www.secondchancefinancialinc.com