When a house purchase loan approval fails, buyers should first review the denial reason and address specific issues. Options include revising financial documents, improving credit scores, or securing a co-signer. Exploring alternative loans, such as FHA or VA mortgages, or negotiating seller concessions for reduced prices or closing costs, may also help. Patience and proactive communication with lenders and sellers are critical to regaining approval.

Denial often stems from credit score discrepancies, insufficient income, or documentation errors. According to the Consumer Financial Protection Bureau (CFPB), 20% of mortgage applications were denied in 2022, with 35% of denials linked to credit score issues. The National Association of Realtors (NAR) reports that 30% of buyers successfully reapply after correcting denial factors, with FHA loans approval rates at 63% compared to 50% for conventional loans. Seller concessions, averaging 1-3% of the purchase price, can offset loan approval hurdles by reducing the buyer’s financial burden. Lenders also favor applicants with stable employment and debt-to-income ratios below 43%, per Federal Reserve data. Addressing these elements systematically increases approval chances while minimizing delays.