If a mortgage application is denied, the applicant should first review the denial reason and address specific issues. They may reapply after correcting credit errors, improving financial stability, or providing additional documentation. Reapplying is possible but requires demonstrating resolved problems to the lender.

After a mortgage denial, reapplying is feasible if the applicant addresses the root causes, such as credit score improvements, debt reduction, or income documentation gaps. Data from the Consumer Financial Protection Bureau (CFPB) shows that 60% of denied applicants reapply within six months, with 35% succeeding after corrective measures. For instance, a 2022 Federal Housing Finance Agency report found that applicants who resolved credit score issues below 620 to 680 had a 45% approval rate upon reapplication. Lenders like Fannie Mae and Freddie Mac permit reapplications after 90–180 days if financial circumstances have improved. Additionally, 28% of denied borrowers in a 2023 National Association of Realtors survey attributed successful reapplications to obtaining a co-signer or increasing down payment savings. These outcomes highlight the importance of targeted reforms and timely reapplication to mitigate denial impacts.