When a mortgage loan cannot be processed, buyers should first contact the lender to identify specific issues such as incomplete documentation, credit score discrepancies, or income verification problems. Real estate agents can assist by renegotiating deadlines, facilitating alternative financing options (e.g., FHA loans, VA loans, or private lenders), or helping buyers reapply after addressing gaps. If the loan cannot be revived, the buyer may walk away from the deal but should retain records for future applications.

Mortgage rejections often stem from documentation errors or financial instability. According to the Urban Institute, 30% of mortgage denials in 2022 were due to credit score issues, while 25% resulted from insufficient income documentation (Fannie Mae, 2023). Alternative loans like FHA loans (3.5% down payment) or VA loans (0% down) can mitigate these barriers, as they offer relaxed requirements. The National Association of Realtors reports that 40% of agents actively help buyers navigate financing hurdles, highlighting the importance of agent collaboration. For example, FHA loans accounted for 10% of U.S. home purchases in 2023, underscoring their role in overcoming mortgage processing failures. Proactive communication with lenders and agents increases the likelihood of resolving issues or transitioning to viable alternatives.