If the only issue on their loan approval is that you don't yet own it (meaning the appraisal, prelim, and contract, will all be rejected), that means you can safely take ownership.

Did they reject your application to borrow money through them?  

He rejected it.

With that said, I wouldn't even tell an applicant why they are being rejected if it were for legal reasons.

@Chris Reeves  I think what your thinking about is this.seller list property you offer full price all cash no contingencies.. seller rejects.. there is a mechanism for the listing agent to get paid.. buyer still does not get the property but the listing agent and maybe the other agent can sue for their commission because they brought in a ready willing and able buyer according to the listing agreement....

Provided you have/find legitimate reasons to deny, or you find a better qualified applicant, your true personal reasons for rejecting are irrelevant.  

So, do you put it under contract at the ask price or most aggressive offer, then see if the deal holds up, or build your model, offer on that (likely get rejected, countered, etc.) and keep going until someone accepts?

I was rejected on: estoppel agreement, rent roll, and a copy of lease.  

I'd like to work close with lenders and have them refer me there "top reject" prospects.

Even if you offer list price they might still reject the offer and decide to relist 20k higher to see if they can get it. 4.