If a resale home loan application is rejected, the applicant should first review the lender's decision reason, address any credit, income, or documentation issues, and consider alternative loan options. Key steps include disputing credit report errors, improving financial health, providing additional documentation, exploring government-backed loans, or seeking a co-signer. Reapplying after correcting issues and waiting 30-60 days before resubmitting can enhance approval chances.

Lenders reject loans primarily due to insufficient credit scores, unstable income, or incomplete documentation. For instance, 62% of rejected mortgage applications in 2023 cited credit score deficiencies, per the Consumer Financial Protection Bureau (CFPB). Approximately 25% of applicants fail to provide adequate proof of income or assets, as noted by the Federal Reserve. Government-backed loans like FHA or VA mortgages, which require lower down payments and relaxed credit standards, approval rates exceed conventional loans by 15-20% (Urban Institute, 2023). Co-signers can boost approval odds by 40% if their credit scores exceed the lender's threshold (FDIC, 2022). Addressing these factors systematically increases the likelihood of success, as 78% of applicants reapplying with corrected issues achieve approval within six months (National Association of Realtors, 2023). Proactive steps align with regulatory guidelines and statistical trends to mitigate rejection risks.