You could be denied because of residency status. While most banks will not lend to you if you are not a U S Permanent Resident, there are lenders that lends to foreign nationals. Also if you are unable to produce sufficient documentation for your income and have lower credit scores you might be denied without the possibility of a stated income program.

Your loan could be denied if you did not provide accurate information during the initial loan application. Underwriters verify nearly all information so you should always provide accurate info up front.

Sometimes applications have been denied because the loan officer did not ask for the proper information or submitted too much information (e. g. submitting a W-2 on a stated income application).

A mortgage application can be denied if the property being bought is not acceptable on the secondary market. For instance, a condominium or cooperative project that is not Fannie Mae eligible, or a house that, based on the survey, has a part of a structure built on a neighbor's land. While no banks would lend on a property with title or survey issues, some lenders thrive on making mortgage financing available to condos and coops that are non-conforming.

Your loan could be denied if you have not been in the same line of work over the past two years. Your loan could also be denied if you have huge gaps when switching jobs.

Your mortgage can be denied for many credit reasons. Your credit score may not fit the guidelines of the program that you are trying to qualify for. You may have too much derogatory credit listed on your credit report or you may have open collection accounts that you are unable to pay and the lender requires them to be paid to obtain the loan you are looking for. Lack of credit tradelines or lack of a credit history are other big credit reasons as to why people are denied a loan. Credit tradelines are open credit accounts reporting on your credit report. If you do not have enough open active tradelines a underwriter may not have enough information to make a decision on wether you are credit worthy of obtaining a loan from them.

Your loan can be denied because income is not sufficient to support the monthly payments according to the lender guidelines.

Loans are sometimes denied because of things that happen after the application is taken. Some of the more common are:

• termination of employment, such as quitting a job to find one closer to the new home, or getting fired for missing too much work while planning the big move to the new home
• increased debt, such as buying things on credit to go in or with the new home, like furniture or a new car, or spending that anticipated refinance money a little early
• late payments, because the borrowers assumes they can make the payment after their refinance closes or the refinance will pay it off.

Lenders are required to send you a form stating the reason for your loan denial.