Sometimes due to sheer bad luck or just having bad credit can have your application for a mortgage loan rejected. To help you out during the time when the mortgage lending company has rejected you, there are still some steps that may help you out. The Equal Credit Opportunity act is a law that requires lending companies to tell the borrower in writing why he or she has been rejected.

The letter you receive must contain the following: The exact or specific reasons why you have been denied or how to be able to get information why you have been denied. The other one is the name and address of the credit report company who provided the information.

The information given by the lending company is sometimes hard to understand. So don't hesitate to ask. Being shy will not solve your problems, the information that they will give you may even be able to help you in improving your credit in the future.

Other reasons that could be factors in rejecting your application is not being able to meet the creditor's minimum income requirement, not being at your job or residence for the required amount of time.

If insufficient income was the main reason why your mortgage loan was rejected or has lack of funds for closing costs and down payments, you can try other loaning programs. Try to look for loan programs that help out people with low or moderate incomes or with lower down payment requirements such as the FHA or VA loan. The FHA loan is the mortgage loan that helps out people who cannot afford down payment. This loan is an insured loan by the Federal Housing Authority f the United States. The VA loan on the other hand is for American veterans or their spouses that is loaned by the United States government.

If the appraised of amount of your property is smaller by 95% than the loan, you will be denied. If this happens try the following: to cover the difference value between the purchase price and appraised value give an additional down payment, let the lender reappraise the property if you think the appraiser undervalued it, and renegotiate to lower the loan amount and purchase price.

If you have been denied due to your credit report, immediately request that copy. It is available for request within 60 days. Read it very well to make sure it is accurate and complete. After reading the copy of your credit report and see that there are mistakes, fix and dispute them with the credit report company. You can then ask the credit report bureau to fix it and resend it. Then ask if the application can be reevaluated.

The last thing to do is try other loan companies. Different loan companies have got different standards. Just try no to apply to more than four loan agencies in the span of ix months.

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.