I was denied after preapproval. What should I check next?

The word on the letter is less important than the notice that followed it.

CFPB says prequalification and preapproval letters both describe an amount the lender is generally willing to lend, based on assumptions. Lenders use the two words differently. Some letters use information you reported. Some use information the lender checked. Either way, the letter is not a guaranteed loan offer.

Because the letter is based on assumptions and is not a guaranteed offer, it is not the final decision. The notice you received is the record of what that lender cited. This page does not treat a denial as proof that the lender acted improperly, and it does not invent a cause the notice does not state.Source [1]Source [3]Source [4]

Use the lender's writing. Do not reconstruct the reason from memory or from a general list.

Ask the lender for the explanation if you do not already have it in writing. CFPB's denial page and its credit-report denial page explain the official next steps, including what to review when a credit report was used. This guide links those pages. It does not restate adverse-action deadlines or the required contents of a notice.

USMI will not decide that discrimination occurred and will not decide that the denial was unlawful. If you think a lender discriminated, use the published fair-lending FAQ and the official complaint paths it points to.Source [1]Source [3]Source [4]

A useful checklist still is not an underwriting opinion.

A low appraisal is a professional opinion that the home is worth less than the sale price. CFPB says it is very risky to buy for more than the appraised value. That is not a verified reason for your denial unless the notice you received says so.

USMI will not calculate an approval probability, infer a lender's underwriting model, or say that another lender will approve you. Do not send USMI a credit report, a Social Security number, income files, or account documents.Source [2]