What to do if my mortgage application was denied?


While a denial of your mortgage application is disappointing, it’s not the end of the world. Find out why the application was denied and fix those issues. The lender must tell you the reasons for the denial.

Copy of credit report

You are also entitled to a free credit report from the agency on which the lender made the decision to deny. Check that report to make sure the information it contains is accurate. If not, contact the agency and provide documentation to have the incorrect information removed.

Work on your credit

If the issue is a low credit score, you will have to work to raise the score, and that takes time. Pay off any credit card balances or at least lower them considerably. If it’s a question of an insufficient down payment, cut your budget as much as possible and start saving money.

Try another lender

Depending on the reasons for the denial, you can try applying with another lender. Lenders don’t all use the same guidelines. If you don’t qualify for a loan at the lowest rate, it’s possible you may qualify at a higher rate.

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