What Can I Do If My Application for a Mortgage Is Denied?

Updated 21 days ago (March 6, 2026)

You have several options:

  • Find Out the Reason for Your Rejection Before Re-Applying. Two common reasons for being denied a loan are poor credit scores (or a lack thereof) and insufficient income.

  • Check Your Credit Report for Errors. An error on your credit report can prevent you from qualifying for better loan rates and terms or from qualifying for a mortgage. Before you shop for a new mortgage lender, you should review your credit report and resolve any errors that you find. It is a time consuming process that is best started before the application process. Once errors are corrected, your credit score should be updated after a few days.

  • Ask Lenders If They Anticipate Any Problems. Speak with a lender's representative to learn what documents and other qualifications they require before you fill out another application.

  • Pay Off Other Debts That May Influence Your Credit Evaluation. Lenders will check your total monthly debt payments prior to issuing you a new loan. In order to increase lenders' confidence in your ability to repay, you should reduce your outstanding debts.

Financial Disclaimer: Tellus provides this content for informational purposes only. This is not financial advice. Financial returns and mortgage terms vary based on individual circumstances and market conditions. Consult a qualified financial advisor before making financial or borrowing decisions.