Ask Questions

• The mortgage lender may contact you in person to inform you of the loan denial. Use this opportunity to ask questions and get a detailed explanation as to why your mortgage application didn't meet their requirements. Countless factors impact home loan approvals, and knowing the exact reason for a denial can put you a step closer to resolving the issues and acquiring the refinance you need.
  
  

Restoring Credit

• Credit issues are common factors that affect your ability to get a mortgage refinance. You may have had a high credit rating when you applied for the original home loan. But over time, your credit score can drop, wherein you no longer qualify for a mortgage. Repairing your credit and raising your score to 680 or higher can sway a lender's decision. A process known as rapid re-scoring can add needed points to your FICO credit score in three days. Call up your creditors and make plans to pay off credit card balances in full. If mistakes appear on your credit file, ask creditors to immediate remove the errors. Creditors charge a fee for quick updates, but if trying to qualify for a refinance, rapid re-scoring is well worth the additional charge.
  
  

Build Equity

• Owing more than the property's worth or not having enough equity in the home can stop the refinance process. Lenders consider the loan-to-value ratio of the property, and an 80 percent LTV qualifies you for a mortgage refinance. By way of explanation, refinancing a $100,000 mortgage loan requires a property value of $125,000. FHA mortgage loans, VA home loans and the Making Home Affordable program allows higher LTV ratios, however, you have to meet the qualifications to be eligible for these loan programs.
  
  

Mortgage Modification

• If poor credit or drop in income prevents a refinance, and if you're in jeopardy of losing your home, talk with your lender and ask about a mortgage loan modification. Modifications can help you get a reduced mortgage rate on your home loan. Unlike refinances, you do not have to re-apply for a home loan with modifications nor will you pay closing fees. Modifications offer relief to borrowers who are behind on their payments or run the risk of defaulting on their mortgage.