Question

Which two of these should you do if your lender rejects your loan application?

Answer 1

Answer: B). Ask your lender why

D). Shop for a different tender or type of mortgage

Step-by-step explanation:

B. You are well within your rights to inquire as to why your application was denied. Lenders are even required by law to give certain information out so do not feel like you're being overbearing. Finding out why your application was rejected will help you know what to fix to be able to apply for another one.

D. Lenders have different risk appetites and preferences. What one lender tells you about your creditworthiness is not necessarily what another will. They may view your finances as well enough to apply. Therefore shopping for a different lender is quite logical if you are rejected. Beware of Predatory lending though whereby unethical practices such as overly high interest rates are used.

Answer 2

Find out the reason why the loan was rejected

You can also look for another lender

Step-by-step explanation:

Loan application could be declined for so many reasons. However , in a situation where an application is not granted , it is good to find out the reasons behind the decision so as to avoid repeating such in subsequent application.

Another step to be taken after denial of application is to look for alternative lender and make another application . One may also need to improve on the application to avoid another denial this time around.