Denied for a Mortgage? What to Do Next
A denial is information, not a verdict. Find the reason, fix what can be fixed, and test the file with another lender.
Step 1: Find the exact reason
Lenders must give you a reason in writing when they deny a loan. Look at the notice. It might say debt-to-income, credit, income documentation, assets or the property. Each one has a different fix.
Step 2: Match the reason to the fix
- Debt-to-income too high: debt payoff, co-borrower, different program
- Self-employed income did not count: bank statement or 1099 programs
- Credit score too low: rapid rescore, dispute errors, FHA or other programs
- Not enough cash: assistance programs and gift funds
- Appraisal or property issue: renegotiate, repair or change loan type
Step 3: Test with a different lender
Another lender may use different guidelines on the same file. I check my lenders for you and tell you where you stand, even if the answer is a timeline instead of a yes. See told no on a mortgage for more.
Common questions
Can I reapply right away?
Often yes with a different lender or program if the issue is addressed. Call me before you reapply so you do not waste an inquiry.
Is a denial on my credit report?
The inquiry may show, but the denial itself does not lower your score.
Told no somewhere else? Call me.
I can’t promise a yes, but I’ll look at every option. Call or text, or meet in person.