Why Most First-Time Buyers Get Denied (and How to Avoid It)
- A king
- Jun 27
- 2 min read
Buying your first home is one of the biggest milestones in life—but for many hopeful buyers, it starts with a painful roadblock: getting denied for a mortgage.
If you're wondering why most first-time buyers get denied, you're not alone. I've helped hundreds of buyers through this process, including many right here in the Inland Empire, especially in Yucaipa and Fontana, where demand is growing and guidelines can feel overwhelming.
Let’s break down the biggest reasons first-time homebuyers get denied—and more importantly, how to avoid them.
🎥 Watch the Full Breakdown Below
Want to hear the story of how a couple with a 572 credit score was denied twice—but just got their keys?
👇 Watch my full breakdown below 👇
1. Your Credit Score Isn’t “Mortgage Ready”
Many buyers rely on free credit apps like Credit Karma, but mortgage lenders don’t use those scores. I've seen buyers in Fontana think they have a 660, but their real mortgage score is a 610—and that can mean the difference between approval and denial.
✅ What to do:Pull your real mortgage scores from tools like MyFICO or AnnualCreditReport.com. In my First-Time Buyer Approval Pack, I break this down step-by-step.
2. Debt-to-Income Ratio (DTI) Is Too High
Lenders don’t just care about what you make—they care about what you owe. That’s where your DTI (debt-to-income ratio) comes in. Most buyers get denied because they don’t realize their car payment or student loans are throwing off their approval.
✅ What to do:FHA loans allow up to 56.9% DTI. That’s a high ceiling, but you need to calculate it correctly. In my guide, I show you how to calculate DTI and even link to a free online DTI calculator.
3. You Don’t Have Enough for a Down Payment
Most people still believe the myth that you need 20% down to buy a house. Not true.
✅ In the Inland Empire, there are programs available for:
1% down conventional (yes, just 1%)
3.5% down FHA loans
0% down VA and USDA loans
Local down payment assistance (like in Yucaipa and San Bernardino County)
These programs are highlighted in my guide with links to video explanations for each.
4. You Waited Too Long to Get Pre-Approved
This one breaks my heart. So many buyers fall in love with a home before they’ve had a lender look at their file. Then they get denied after they’re already emotionally attached.
✅ Solution:Use the tools in my First-Time Buyer Approval Pack to get started early. You’ll know what documents to gather, how to check your credit properly, and what to expect when it’s time to apply.
📩 Grab the Free First-Time Buyer Approval Pack
This guide includes:
A lender-approved checklist
Credit tips that actually work
A fillable DTI worksheet + calculator
Down payment program links
A link to schedule a strategy call with me
Let’s Talk About Your Game Plan
If you’re in Yucaipa, Fontana, or anywhere across the Inland Empire, I’d love to help. Or if you're reading from Missouri, come by the office—I'm based right here in the Ozarks!
📍Monarch Lender
118 W. North St 1A, Republic, MO 65781
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