There are 5 main reasons why a home loan application may be rejected: 1) The builder is not approved by the bank. 2) The specific property is not approved, even if the builder is approved. 3) There are issues on the applicant's credit report or credit score. 4) Problems arise during the property valuation process. 5) Legal issues are uncovered during the application review. It is important for applicants to check which builders are approved by their bank and to regularly monitor their credit score in order to avoid rejections due to credit problems.