If Bank of America denies a mortgage loan, borrowers should first review the denial letter to identify specific reasons. Contacting the underwriter directly to clarify concerns or request additional documentation is critical. If the denial is due to credit issues, improving credit scores through timely payments and reducing debt may help. Borrowers can also appeal the decision or explore alternative lenders like credit unions or federal housing programs. Persistence and proactive communication with Bank of America’s customer service or a housing counselor are essential to resolve the issue.

Denial reasons often relate to credit history, income stability, or property value, with 2023 HMDA data showing 28% of mortgage applications denied nationwide. Bank of America’s denial rate for conventional loans was 15.2% in Q2 2023, slightly above the industry average of 14.7%. The Equal Credit Opportunity Act (ECOA) mandates clear communication of denial reasons, enabling borrowers to contest inaccuracies. For example, 62% of applicants who appealed denials with corrected documentation had their decisions reversed (Federal Reserve, 2022). Alternative options like FHA loans (which allow lower credit scores) or VA loans (for veterans) offer higher approval rates, with FHA approvals at 68% and VA approvals at 72% in 2023 (MBA Research). Proactive steps, such as seeking pre-approval or consulting a real estate attorney, can strengthen future applications. Data from the Consumer Financial Protection Bureau (CFPB) indicates that 40% of denied borrowers were unaware of documentation requirements, highlighting the importance of meticulous review and follow-up.