Always prepare yourself when applying for a loan.  Being prepared can help ease your worries and prevent getting your application loan rejected.  To help you avoid rejection, here is a list of common reasons why some loan applications are denied and how you can avoid it.

1. Your loan application might be rejected if you apply for too much money.  Instead, let the lender decide what you can borrow and what you can afford to pay.
2. Lack of preparation.  Gather all the necessary documents including pay stubs, investment statements, tax returns and bank statements before applying for a loan
3. Lack of understanding with the loan programs and processes.  Ask the help of a professional to help you understand loan terms.
4. Third Parties who coordinate your loan may not be in sync.  So you need to exert extra effort to meet the deadlines for your loan application.  Communicate with the people involved in the transaction including the buyer, seller, lender, home inspector and lawyers.
5. Being self employed can also be a problem.  You need to provide more documents to apply for a loan.  Show your proof of income and employment status before the lending process.
6. Make sure that all property repair problems are dealt with before applying for a loan.
7. Credit problems.  Check your credit report for any errors or problems that you need to explain or clean up.