If a mortgage lender denies your application, first review the denial letter to identify specific reasons. Correct errors in documentation, such as updated credit reports or proof of income, and request a reconsideration by contacting the lender’s underwriting team. If the denial was due to credit issues, consider a credit counseling agency or a co-signer. If the decision is final, explore alternative lenders like FHA loans, VA loans, or private lenders. Document all interactions and save records for potential appeals or legal action.

Denial reasons often include credit score inaccuracies, insufficient income, or property issues. According to the Consumer Financial Protection Bureau (CFPB), 60% of denied applicants could have succeeded with additional documentation or corrected errors. A 2022 Federal Reserve report found that 45% of mortgage rejections stemmed from credit score concerns, while 30% were due to low down payments. Reapplying with improved financials or alternative loan programs increases approval chances. For example, FHA loans require only a 3.5% down payment, making them accessible to applicants with lower savings. Proactive communication and data-driven adjustments align with industry trends, where 35% of reapplicants secure loans after addressing denial factors. Lenders increasingly prioritize flexibility, as 28% of denied borrowers found success through non-traditional lenders in 2023.