First Thing to Do if Your Mortgage Application is Denied
Q: My mortgage application was denied. What can I do? Lloyd, Union, NJ
A: Lloyd, it’s not the end of the world just because your mortgage application was denied. Lenders reject about 50% of refinance applications and about 30 percent of buyers who apply for a mortgage loan. Keep in mind that different lenders have different requirements, so you can apply with another lender or mortgage broker. It probably makes sense to try to find out why your mortgage application was denied—so ask. Also, the denial may not be based on you as a borrower, it may be the property itself, so go back to the lender or broker and find out why your application was denied, then take concrete steps (i.e. cleaning up your credit), to increase the odds of you winning a mortgage approval the next time out.
Thanks for your question, Lloyd, good luck.
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