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“Your mortgage loan application was rejected.”


These are tough words to hear, as getting denied for a mortgage can be heartbreaking.


Mortgage denial rates varies by city but studies show roughly 8% of mortgage applications are denied. 


So what are some of the reasons a mortgage is denied? What can stop you from getting a mortgage and you can prevent it from happening?


Why mortgage applications get rejected

The first step is to get an understanding of why your application was turned down. This should give you some insight as to what you'll need to do before applying for a mortgage again.


If credit was the reason for getting denied, your lender should have sent you a letter known as a Statement of Denial or Adverse Action Notice. This notice is meant to explain how your credit history resulted in your loan being denied, and provide reasons such as defaulted loans or too many inquiries, and explain certain rights you may have.


There are a number of reasons your home loan may have been denied.

  • Credit score too low
  • Debt-to-income (DTI) ratios are too high
  • Down payment funds aren't enough
  • Loan-to-value (LTV) ratio is too high / appraisal came back low
  • Job status change
  • Large cash deposits in bank accounts


Whatever the reason you've been declined, the good news is you can fix most of these issues with a little time and effort and we are here to help! Please fill out the form below to get started towards repairing your credit today!