How Soon Should I Be Notified if My Mortgage Loan Is Denied?

This is a good question, but one that is very important. Your lender is required to gather relevant information and inform you if your mortgage was rejected within 30 days. In this time, the lender must do several things. First, they must appraise the value of the property you want to buy. Second, they must check your credit history. Third, they must check your income. And finally, they need to assess the stability of your income and of your employer’s business. This is to make sure that you will continue to make as much as you are making now, and is a good way for the lender to be extra­-sure of your financial situation before they lend you the money.

If the lender fails to give you an answer within 30 days of application, then you might have grounds for legal action. You should contact a lawyer, and find out how to proceed.

There are also some other things to remember in this situation. The lender is required to provide you with a letter stating exact reasons as to why your mortgage was denied. If they simply tell you that “you failed to meet our minimum requirements”, then you should know that this is not a good enough answer. They need to give you specifics… answers like “your credit was not good enough”, or “ your salary was too low” are more specific and are better examples of answers you should obtain.