If a home loan application fails, first review the denial reason carefully. Common issues include credit score gaps, insufficient income, or document errors. Correct inaccuracies, dispute credit report mistakes with bureaus like Experian or Equifax, and improve financial health by paying down debts or boosting savings. Consider alternative loans such as FHA, VA, or USDA mortgages, which may offer relaxed requirements. Reapply after 30–60 days with stronger documentation and a higher credit score.

The denial often stems from creditworthiness or documentation flaws. A 2023 Federal Reserve report found 25% of rejected mortgages were due to credit score issues, while 18% lacked sufficient income documentation. Improving a credit score by 50–100 points can increase approval chances by 30–40%, per FICO data. FHA loans, requiring a 580+ score, approve 65% of applicants versus 20% for conventional loans, per HUD 2022 stats. Addressing these factors systematically raises approval odds. Additionally, 70% of applicants reapplying with corrected documentation see success within six months, per CoreLogic 2023 research. Proactive steps mitigate rejection risks and align with lender criteria.