6 common reasons your refi could be denied & how to avoid them

Refinance denial reasons tend to fall into one of a few categories, according to data collected under the Home Mortgage Disclosure Act. Here are the most common.

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You have too much debt

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You have bad credit

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Your home value has dropped

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A surprisingly common reason refinance applications are denied is because your loan application was incomplete.

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6 common reasons your refi could be denied & how to avoid them

Refinance denial reasons tend to fall into one of a few categories, according to data collected under the Home Mortgage Disclosure Act. Here are the most common.

You have too much debt

The most common reason why refinance loan applications are denied is because the borrower has too much debt.

You have bad credit

Your credit score gauges how likely you are to repay a loan and is usually measured on a scale from 300 to 850.

Your home value has dropped

When you apply for a mortgage refinance, your lender will want to make sure the property is worth enough to justify the refinance.

A surprisingly common reason refinance applications are denied is because your loan application was incomplete.

Your application was incomplete

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