What should I do if I don’t get a loan approval in spite of having a good score?

Of course, that can happen. There may be 3 different reasons for which your brother has been rejected.

a. Your brother earns much lower than what he want to borrow. To solve this problem your brother needs to check the report that he gave to the lender. He must include all of his side-income or extra source of money in the report. The lender will surely consider it.

b. His debt-to-income ratio (DTI) is too high. To reduce the DTI, he must pay off some of his existing debt; preferably the higher ones.

c. Your brother is a self-employed man or he might have an irregular income. To resolve this issue he must keep good, detailed records of your income as well as the past employment history. He may also need to provide proper income tax documents to prove himself as a well-earned man. You may also offer the lender a big amount as down payment, it'll sure lure them to take the bait.

Your brother can apply for a home loan from another lender. Before that ask him to read the reasons cited in the formal rejection letter and fix the issues, if any.

Hi Gene,

Check your brother’s documents and ensure that there are no errors.

Moreover, the lenders may be assessing your creditworthiness on different information other than what is there in your credit reports, which you’re checking. Lenders usually use different credit-scoring models as per their suitability.

So, if required, talk to a financial advisor regarding how you can increase your creditworthiness to your future lenders.