No one likes to be told “no.” (Rejection hurts—we get it.) And having your application for a mortgage declined is particularly devastating, because it throws your entire dream of homeownership into doubt. Still, just because one lender rejects your mortgage application doesn’t mean you’ll never be able to buy a home.
So if you’ve been denied a home loan, the first step is to ask the lender why you had your mortgage declined, to know what you’re up against. Todd Sheinin, mortgage lender and chief operating officer at New America Financial in Gaithersburg, MD, says there are three main reasons why people get rejected.
“It’s usually either a credit issue, an income issue, or the applicant doesn’t have enough cash to make a down payment.”
Once you know what the problem is, you can take steps to turn your home loan luck around. Click here to read some tips for each of the three situations on Realtor.com. And of course, feel free to call me with your concerns. My network of loan officers are ready and willing to help.