If your home loan application is denied, don’t panic. There are ways to build your eligibility so that, next time, your mortgage application will be more likely to be approved.
Here’s what you should know about why your loan application was denied and how you can recover.
Why Your Loan Application Was Denied
If your loan application was denied, before you apply for another loan, it’s important to understand the qualifications your lender considers before saying “yes” or “no” to your application.
Lenders consider multiple factors when reviewing a loan application and two of the main ones are credit and income. Grounds for loan application denial based on credit or income could include:
Your lender is required to disclose to you within 30 days of the decision about why your loan was denied. You can also call your lender for further explanation.
How to Recover
Once you’ve identified why your loan was denied, you can begin to work toward building your eligibility for a mortgage.
Here are five steps you can take toward recovery.