If a bank denies a mortgage approval, first review the denial letter to identify specific reasons such as credit score issues, insufficient income, or property problems. Correct errors in documentation, improve creditworthiness by paying down debt or waiting for credit score recovery, and reapply with stronger financials. Consider alternative loan programs like FHA loans (which require lower down payments), VA loans (for veterans), or private lenders offering non-traditional terms. Consult a housing counselor or mortgage broker to navigate options and ensure compliance with local regulations.

Denial reasons often stem from credit score gaps (Fannie Mae data shows 30% of denials in 2022 due to credit issues), debt-to-income (DTI) ratios exceeding 43%, or property value discrepancies. FHA loans, which accept DTIs up to 57%, approved 65% of applicants in 2023, per HUD reports, while conventional loans require stricter DTIs. Private lenders, though offering more flexibility, approve only 40-50% of applicants but charge higher rates (e.g., 8-12% APR vs. 6-7% for FHA). A 2023 LendingTree study found 70% of denied borrowers reapply within 3 months after addressing issues. Reapplying typically takes 4-6 weeks, with 25% of applicants securing approval on second attempts. Proactive steps, such as refinancing through alternative programs or negotiating seller contributions, can mitigate delays. Data from the Consumer Financial Protection Bureau (CFPB) highlights that 60% of denied applicants overlook correctable issues like outdated income documentation or unresolved property liens. Engaging professionals to audit applications and leverage government-backed programs significantly improves approval chances.