Read the decision and ask questions
The lender should provide the principal reasons for its decision or tell you how to obtain them. Ask which requirements were not met and whether missing or inaccurate information affected the review.
A preapproval is not final approval; changes to documentation, credit, employment or the property may affect a later decision.
Review the likely problem areas
Credit history, a high debt-to-income ratio, insufficient documented income or funds, and property or appraisal issues are examples—not a diagnosis of your application. Requirements vary by lender and program.
Review the relevant documents and, if a credit report was used, follow the notice’s instructions to obtain and check it. Dispute errors with the credit reporting company and the business that supplied the information.
Plan your next step
Ask a licensed mortgage professional what documentation or changes would address the specific reasons, what other programs may be available, and whether a new credit inquiry would be needed. Avoid paying anyone who promises guaranteed approval.
If you believe the decision involved discrimination, consult the CFPB’s guidance and consider filing a complaint.
Official sources
Educational information only. Loan availability, eligibility, pricing, fees, approval, and any rate lock must be confirmed by a licensed mortgage professional.