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Tulsa Mortgage : Podcast 159


Tulsa Mortgage This is the Steven Tyler show episode. Number one fifty nine.

To Steven Tyler. With Steve Curry tom tom and Tyler while. Negotiating partner. Chris. Marsh. Good for you.

They’re talking about everything you need to know. What it is like to get ready.

Here’s Steve.

Tulsa Mortgage Good morning afternoon evening whenever you guys are listening. This is Tyler from the Steven Tyler show. Today I’m going to be talking about does a lone denial of fact my credit negatively. The short answer is No. Absolutely not. Just getting a loan denied does not affect your credit negatively. And I’m talking about when you’re starting your pre-approval for whatever reason your pre-approval doesn’t go through. And so the lender actually has to deny your loan. We actually have to send out a formal reason not a formal e-mail. We can actually send out a formal letter in the mail whenever a loan is actually denied. And that’s just. Part of the process. I mean it’s what we actually have to do. So. So those go out through the system I think it’s within 30 days we have to have a complete loan decision made. So when you apply to get pre-approved if let’s say let’s say you don’t provide all of your information. Say you know you just kind of give half of an application. It’s missing some kind of documentation so you can be missing bank statements you re missing pay stubs tax returns especially if you’re self-employed you know if you start an application and we put your credit credit looks great and then I say hey I need to get your tax return so that I can look at it and calculate your income. And then three four weeks later I still don’t have your tax returns for whatever reason you get to that point where I’m taking actually have to deny your loan.

Tulsa Mortgage In my system and you maybe a week five get together your tax returns or whatever we’re going to need then. That’s when. You know we’re going have to start over. So 30 days we have to we have to do something make a decision yes or no. And without all the information then we’re going to have to give it a go. So what that does is that prompts us to give you a loan denial but in no way does that hit your credit. It doesn’t do anything negative for you. There’s no record sitting out there that the world can see that you’ve got denied for a loan application. But a lot of people kind of wonder that they’re like well you know I’ve pulled my credit and ran all of this stuff. So surely that’s going to hurt me. No it doesn’t. It’s just a formality. It was really all it is. We just can’t hang onto things forever. So make sure you know if you’re going to apply for a loan you really need to. Be ready to get all your documents together get all your stuff in in a timely manner. I mean in all reality 30 days is plenty of time. In my opinion to get anything and everything you could possibly need. So if you can’t for whatever reason I mean that’s just the short of it. Your loan is going to have to get canceled. So. There’s really. No reason it would affect your credit negatively.

Anything that we do on your loan approval side is really not going to affect you negatively at all. So let’s say I pull your credit and you don’t qualify just simply based on your credit score that’s not an issue necessarily for you moving forward. Sure it’s in the show that you had your credit pulled by us as far as you know when you applied. But that’s also going to show why it doesn’t show hey pulled your credit and your luck or your credit everything’s great.

Tulsa Mortgage Try to do your loan. You were responsible you didn’t give us everything we needed in time so we can still get along. It just says that we pulled your credit and this says when we did and that’s it. So really there is no running record of a loan was denied. But it can happen for several several reasons. I mean just the short of it would be. Your documents. That’s always the biggest thing is trying to get all the documents together for somebody. We can’t do that then we can’t move forward on their one bad credit score. So credit score doesn’t qualify. There’s really no way to get it up except for time and work and it’s going to take longer than 30 days. Then we’re going to have to send that alone. Now maybe you know what you’re trying to do. It’s going to take a little bit of time on your end. You know maybe you’re getting a raise in three or four months and that’s actually going to help you qualify for what you want. Maybe you’re moving completely different states different locations completely different jobs. All those things you know something has to happen before you can actually be approved. So you know here I am on day 60 so I’ve done anything. Well your initial loan has already been canceled. So it doesn’t really mean anything and it’s not. Bad for you necessarily. We just have to start over. So pretty easy on our enemy especially if we got everything started we just copy your old little file over to a new one run new credit probably.

Kind of depends on how long it’s been since I polled as long as you qualify on credit. But then we just kind of start over. So it’s really not a big issue but a lot of people can can think that and I can see where they can think that you know they get this formal letter in the mail that says hey you applied for a loan with us and you were denied. But it’s really not. Not that big of an issue. And we have to do it all the time. You know I mean sometimes we’re human. So whenever we enter in an application maybe something got messed up on our end that it was wrong something was just completely wrong with that file to the point where we actually had to cancel it in order to make a new one. So you actually have two loan files working with us which again don’t hurt you. You don’t see this on the back backend as a consumer but we have to cancel that old Gloam file and they’re going to get a notice of cancellation. And this happens quite a bit probably more than I’d like to admit. But again we’re human. So when it comes to that as far as the things that we enter I mean we’re only as good as the information that we get. Sometimes that information is. Wrong. So so we have to make it even M-file we actually have one working and then we have an old one that we had started before and nothing’s happening with it because that’s someone we can’t touch.

Tulsa Mortgage Well that one’s going to have to get canceled. So here we are working with the borrower working towards actual closing. We have a working file. Yet. They’re going to get a cancellation notice e-mail mail on their old file and that’s really just I mean it’s what has to be done.

So as far as far as overlays for us go in the industry I mean those those are requirements on our site that just have to be done. So it can be awkward if it causes weird phone calls. You know people call them back and they’re like hey you know what’s going on we’re close and two weeks and I just got notice that Wallonia canceled. It really didn’t get canceled. The old one did. We’re moving forward is fine. So that’s a conversation that we have to have. So in that instance as a loan officer just be proactive when you know that that files get canceled. Just give them a call let them know what’s coming. So that way you can avoid the freak out because they’re already stressed out enough on the home buying process and everything else is going on and getting you everything that they need. So just ease that tension before it even starts. Just call them right away hey just let me know you’re going to get an e-mail. It means absolutely nothing because I’m actually moving forward on it alone. Something got messed up in the file. No big deal and it’s not going to fetch it negatively. So reinforce that when you speak to people because it’s really it’s just like if you went out and you applied for a car loan and for whatever reason you got shut down or you didn’t buy that car it’s not going to hurt your credit all it’s going to show is you had your credit pulled.

Tulsa Mortgage That’s the only record that moves with you from start to finish is the fact that somebody pulled your credit. And they will say you know what type of consumer it was will say you know. In there on the credit pool it’s pretty obvious you can tell you had your credit pulled by a mortgage company but if you had your car pulled and.

You just decided not to buy a house and so you’re just like hey now is not the time. I think maybe in about six months a year whatever I’ll be elated probably ready. It’s going to look the exact same on your credit as it’s going to look with. I applied for a loan and I didn’t make enough money. So at this time I can’t buy my loan was cancelled. Those two things as far as the credit report goes look the exact same. So they do nothing to you to affect your credit negatively. And that’s. That’s the gist of it. So that’s all I got today. If you’re listening. Thank you for listening. The big answer is No. Your loan denial will not affect your credit negatively.

Tulsa Mortgage Broadcasting live from the koala’s studios in Tulsa Oklahoma. You’re listening to the Steven Tyler show