Picture this:

You’ve found the perfect house. You’re picturing the couch in the living room, the grill on the patio, maybe even picked out paint colors. Your offer is in, your lender has your documents, and then—bam—your loan gets denied.

Not because you weren’t serious.
Not because you didn’t have a plan.
But because no one told you what really mattered.

As a mortgage broker, I’ve seen this story play out more times than I’d like. The truth? Most denials aren’t about having “bad credit” or “not enough money.” They’re about small, preventable missteps that snowball into deal-breakers.

Let’s talk about the real reasons people get denied—and how to avoid them.

1. Good Credit Score ≠ Good Credit History
Many buyers assume that once their score hits a certain number, they’re golden. But lenders don’t just glance at your score—they dig into the details.
That 700+ score? It won’t hold up if it’s hiding:
Late payments on old accounts
Unpaid medical collections
A forgotten car loan that still reports monthly
Lenders care about patterns, not just the number. They want to know: Are you consistent? Reliable? Low risk? Your credit history answers that, even more than your score.

2. You Made $120K… But Only “Showed” $60K
If you’re self-employed, buckle up—this one’s for you.
Many entrepreneurs, freelancers, and small business owners run lean for tax purposes. Smart on paper, right? Until it’s time to qualify for a mortgage.
Lenders don’t count gross income. They look at taxable income—the number after you’ve written off your mileage, your home office, your software, and your coffee shop “meetings.”
So while your bank deposits might show $10K/month, your tax return might only show $5K. And that’s what lenders use to calculate what you can afford.
The fix? Planning ahead. Sometimes it means adjusting your write-offs for a year. Sometimes it’s about showing additional documentation. Either way, the earlier we talk, the more options we’ll have.

3. Down Payment? ✅ Reserves? ❌
You’ve saved $20,000 for your down payment. Amazing. But here’s what most buyers don’t realize: lenders want to see what’s left after you close.
Why? Because life happens.
Unexpected car repairs, medical bills, job shifts—it’s not about predicting disaster, it’s about being prepared for it. That’s why many loan programs require “reserves”—typically 2–6 months’ worth of mortgage payments sitting in the bank post-closing.
No reserves = red flag. But don’t panic. There are ways to structure your loan to keep more cash on hand. Again, it comes down to strategy.

4. They Bought a Car Before the House
This one hurts.
You’re about to close. Everything looks great. And then—BOOM—you buy a car. Maybe it was a lease upgrade. Maybe the dealership had a great deal. Either way, you just added a new loan to your credit report.
Which means:
A new debt-to-income (DTI) ratio
A lower amount of qualifying income
An entirely different risk profile
And for some lenders? That’s enough to shut it down—fast.
Here’s the golden rule: Until the keys are in your hand, don’t touch your credit. Don’t open new accounts. Don’t finance furniture. Don’t co-sign for anyone.

5. Most Denials Are Preventable
This is the part that keeps me up at night—because so many of these heartbreak moments could’ve been avoided with the right timing, a bit of education, and a game plan.
I’ve helped clients bounce back after denials. I’ve restructured deals, fixed credit report errors, helped self-employed buyers show qualifying income, and even prevented mid-process disasters by being one step ahead.
Because the truth is:
You’re not “unqualified.”
You’re not “too late.”
You just need a guide who understands how the puzzle fits together.
Final Thoughts: Let’s Talk Before It Becomes a Problem

Mortgage denials aren’t just about numbers—they’re about what you don’t know yet. And that’s okay. You’re not supposed to be the expert. That’s what I’m here for.

If you’re thinking of buying in the next few months—or even next year—now is the time to prepare. I’d rather help you plan early than fix a last-minute mess.

Let’s create a strategy that works for your life.