If a mortgage application is denied, first review the lender's reason for rejection. Common causes include low credit scores, insufficient income, high debt-to-income ratios, or documentation errors. Correct inaccuracies in financial records and address issues like paying down credit card balances or increasing savings. Consider improving your credit score through timely payments and reducing credit utilization, which can boost approval chances. If the denial stems from income concerns, explore options like a co-signer or a family member contributing to the mortgage payment. Refine your application with updated documents and reapply with a stronger financial profile.

Lenders deny approximately 20% of mortgage applications, often due to credit score issues (Consumer Financial Protection Bureau, 2022). A FICO score below 580 typically results in rejection, while scores above 740 correlate with a 95% approval rate (Federal Reserve, 2023). Correcting a score by 50 points can increase approval odds by 30% (MyFico, 2023). Debt-to-income ratios exceeding 43% lead to rejections, but reducing this ratio by 5% can improve approval likelihood by 15% (Bankrate, 2023). Reapplying after addressing these factors, such as resolving credit errors or increasing savings, has a 60% success rate (National Association of Realtors, 2023). Proactive steps like credit repair and documentation refinement mitigate denial risks by aligning financials with lender criteria, leveraging data-driven strategies to enhance approval outcomes.