What to Do if Your Loan was rejected because of low credit scores
or excessive debt-to-income ratios
When a lender rejects or denies your loan, because of low credit scores or excessive debt-to-income
ratios you might not know where to turn or what to do next? Most lending institutions are not willing
to spend the time or resources required to approve your loan. The good news is that at 1st Florida
Lending we do!
This applies to any type of loan you might apply for. Whenever there is a disconnect between what
you thought was possible and what a lender agrees to, it’s worth finding a lender like 1st Florida
Lending who takes pride in finding solutions to overcome obstacles that are tailored to your
immediate funding needs!
More details about Debt-to Income Ratios and Low Credit Scores
and how we can help
Debt-to-Income Ratio to High: For most loans, lenders calculate your debt-to-income ratio to see
if you can handle the payments upon approval of your loan. They compare how much you earn
each month to how much you spend on debt repayment, assuming minimum payments. If it
doesn’t look like you’ll be able to afford the new debt, they reject your application. Consider a
Larger Down Payment: A larger down payment might help you get approved. Also you will
borrowing less, with a lower loan-to-value ratio and make is possible to approve a loan even
without perfect credit at a lower monthly payment.
Low Credit, Bad Credit or No Credit: 1st Florida Lending will look at your borrowing history,
usually in the form of your credit scores, when you apply for a loan. We want to see a solid history
of borrowing and repaying loans. However, you might not have borrowed much, or you might
have experienced some challenges and actually defaulted on loans in the past. If credit was the
culprit, it takes time to improve your credit, but you may not have the luxury of waiting on creditors
and credit reporting agencies. Especially when you’re under a contract deadline or negotiating a
new home/property purchase, a small increase in your credit score can save you tens of thousands
of dollars. At 1st Florida Lending we will pull your credit using a What-if-Simulator
The What-If-Simulator, provides score forecast that simulates the impact of complex changes or
pending activities that affect your credit score. Safely test changes before taking action – or mitigate
upcoming issues – so you can make informed decisions, be proactive, and find just the right actions
including using Rapid Rescoring to expedite updates your credit scoring with credit bureaus.
Rapid Rescoring can update the consumer credit information with the three national repositories of
consumer credit information within 3 to 5 days. How does it work? Your payment receipts showing
that a debt or debt(s) are paid off or paid down are provide directly via our credit vendor to the three
major bureaus to updating of items reporting incorrectly on the your credit file.
Why Rapid Rescore?
Working with creditors on your own, can delay the process, more specifically, any actions you take
today can take one month or more to show up in your credit reports. But mortgages and sales
contracts have deadlines. If you can’t meet your financing deadline with the rate you want (or if rates
move higher while you wait), you’ll have to make some difficult choices.
What Rapid Rescore Doesn’t Do
Rescoring Accuracy Is Important: Rapid Rescoring expedites the process of updating your credit
reports. However, it only works if the information you provide is accurate. If there’s an erroneous entry
saying you defaulted on a loan, rapid rescoring can help get that information removed quickly. If you
defaulted on the loan, you won’t get the negative item temporarily removed (it’s not a “trick” to
improve your credit just long enough to get your loan approved).
It is Not a Credit Repair: Rapid rescoring is not a credit repair nor can it add new lines of credit
to the credit file or update credit limits. Simply stated, it’s just an express lane for getting information
to credit bureaus to post updates faster. You’re not going to dispute anything and everything that
brings down your score, and you’re not going to negotiate settlements with creditors. Instead, you’ll
take action to improve your credit legitimately and have those actions reflected in your credit scores
Only as Rapid as You Are: To have success with rapid rescoring, you may need to participate in
the process. For example, if you’re late on payments, you can get current and use rapid rescoring, but
you’ll need to come up with the money and get it to your lender before ordering an updated credit
score. Likewise, you may need to dig up documentation to prove that accounts were paid off, and that
takes time and effort — you can’t count on your lender to do all of the work for you.
Disclaimer: Rapid rescoring is a highly successful and reliable strategy, but it can sometimes not
produce the results or outcome you are hoping for. For more information visit their website
CHALLENGING MORTGAGE LOANS
We Approve Challenging Loans
Need Help? Click Here to answer a few questions along your scenario and let us
prove ourselves! For immediate assistance. Contact us at 407-300-2558 so we can
explain why you were denied and what steps you can you take right now to get