Hi, I have a question for you. Who didn't approve the loan? Was it the bank or you that didn't approve the loan? I just want to clarify. Your agent should have explained the contingency period of the transaction which is the period where you as the buyer must do all of your inspections of the property and assure the financing of the property. Once that contingent period is over than you as the buyer may risk loosing your deposit if you decide to cancel. However, once the contingency period is over you must sign a removal of contingency document removing all contingencies. If you signed document and then cancel you may lose your deposit. If you didn't sign that document and canceled then you should be able to get all of your deposit back. On all transactions where I am representing the buyer, I make sure the loan has been approved before I remove the loan and appraisal contingency. I will remove the inspections contingencies but not the loan or appraisal like I just explained. If needed I will request an extension of contingencies for those items. The reason why I asked what type of financing your were obtaining is because with FHA financing you may be able to get your money back. However, you may have to fight for it. I am surprised your agent didn't explain that contingency period and what must be done when running into the contengency deadline. Why didn't the loan get approved? Was it due to appraised value, income, credit scores or credit history? If it was due to the appraised value and you did FHA financing, then you will get your deposit back because the Real Estate Clause which must be signed by all parties ageeing that if the property comes in less than the purchae price you have the right to cancel and not risk your deposit. The best thing for you to do is talk to your agent and make sure he explains everything to you and fight for your deposit if you signed off on contingencies. Good luck!!