If a lender denied your mortgage, the first step is to find out exactly why. A denial from one lender is not a denial from every lender, because lenders set different guidelines, and a mortgage broker can compare many of them at once.

Why mortgage loans get denied

  • Debt-to-income ratio too high. Sometimes fixable by paying down a balance or restructuring the loan.
  • Credit changes during the process. A new inquiry, new debt or a maxed-out card can move your score.
  • Income that does not fit the box. Self-employed income, a new job, or bonus and commission pay.
  • Property issues. A condo that is not FHA approved, a low appraisal, or well and septic concerns.
  • Lender overlays. A file can meet the program's published guidelines and still fail one lender's stricter internal rules.

What to do after a denial

  1. Get the reason in writing. Ask for the denial (adverse action) notice and the specific reason.
  2. Have the file reviewed by a broker. We compare it against our wholesale lenders, because guidelines differ from lender to lender.
  3. Match the file to the right program. A different loan type, such as FHA, or an alternative-documentation program, may fit better.
  4. Fix what can be fixed. That can include correcting credit report errors and paying down specific debts, depending on the file.

Not every file can be approved right away. Some need time to season income or rebuild credit, and we will tell you plainly where you stand.

What to send us

  • The denial letter or adverse action notice
  • Your most recent Loan Estimate
  • Recent tax returns and W-2s or 1099s
  • Recent bank statements
  • Your purchase contract, if you have one

Frequently asked questions

Can I get approved by another lender after being denied?

Often it is possible, depending on why you were denied. Different lenders and programs have different rules, so the same file can get a different answer.

Where can I learn more?

See improving your credit to become a homebuyer, compensating factors, and how a Woodbridge mortgage broker works.

Call (732) 754-7474 or send us your file for a second look →

JahnLends is the Woodbridge, NJ branch of AMS Mortgage Services, NMLS# 145742. Equal Housing Opportunity. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Other restrictions may apply.