1. Get the exact reason
Review the adverse-action notice, underwriting findings and any explanation from the lender. “Didn’t qualify” is not specific enough to know whether another program may help.
Mortgage denial review
Denied for a mortgage? Find out what actually caused the problem.
A mortgage denial can result from income calculations, debt ratios, credit, assets, property issues, documentation or a program-specific rule. A second review starts with the exact reason—not with a promise that every denied loan can be approved.
2. Separate fixable from non-fixable issues
Some issues may be addressed with better documentation, debt payoff, additional reserves, a different loan amount or a different eligible program. Others may require time or a material change in circumstances.
3. Review alternative qualification methods
Self-employed borrowers, investors and borrowers with complex income may have legitimate alternatives to the documentation method used in the original application.
Common reasons a mortgage may be denied
Income
- Qualifying income calculated lower than expected
- Self-employment income reduced by tax-return analysis
- Insufficient history for variable income
- Documentation did not support the income used
Debt & credit
- Debt-to-income ratio exceeds program limits
- Credit score or recent credit events
- Undisclosed or newly reported liabilities
- Monthly obligations calculated differently than expected
Assets
- Insufficient verified funds to close
- Reserve requirements
- Large deposits requiring documentation
- Gift or business funds not documented as required
Property or program
- Appraisal or collateral issue
- Condo/project eligibility
- Property type outside a program’s rules
- Loan amount, occupancy or other program restriction
What to bring for a second review
The more specific the information, the more useful the review.
From the prior lender
- Denial/adverse-action notice
- Loan Estimate if one was issued
- Any underwriting condition list or explanation
- Appraisal information if relevant
Your current documentation
- Income documentation appropriate to your situation
- Asset statements
- Current mortgage statement for a refinance
- Purchase contract for a purchase
- Any documentation that directly addresses the denial reason
A different lender is not a guarantee of a different result. A new review can identify whether another eligible program, calculation or documentation method exists, but all loans remain subject to underwriting and applicable requirements.
Want a second look at a declined file?
Tell us why the loan was declined and we can determine what is worth reviewing next.