Denied Mortgage Application? 5 Things You Can Do Next
Updated: Apr 26, 2021
So you gathered all your documents, applied for a mortgage, dreaming about that perfect house you saw the other day. Then you waited and waited for that phone call, and finally, they call to tell you… your loan application was denied.
Yes, it feels devastating, but keep your chin up because I have good news for you: there’s hope yet for aspiring homeowners just like you.
Here’s what you can do if your mortgage application is denied:
Find out why you were denied. Your loan officer should give you a definite answer as to why your mortgage application was turned down. Having this info will help you know what you need to do next time.
Check your credit report. Pull your free credit report and make sure there aren’t any errors.
Pay down your debt. Most lenders want to see a debt-to-income of less than 43%. Do what you can to come in under that number by paying off credit cards, student loans, and car payments.
Shop around. If you were denied a conventional loan, talk with your realtor or mortgage advisor about other loan products that may work with your financial profile. Don’t be afraid to speak with multiple lenders.
Give me a call! I’d love to listen, encourage, and get you back on the path to homeownership.
If you’re looking to buy a home and have had trouble getting a loan, book your free 30-min consult.