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Why mortgages may get rejected

Lots of factors go into whether someone's mortgage application is accepted or rejected.

Lots of factors go into whether someone's mortgage application is accepted or rejected.

When someone can't land a mortgage, all moving plans come to a screeching halt. Usually, a mortgage is rejected when a homeowner doesn't have good financial standing, but sometimes even a strong credit history can lead to a mortgage denial.

CNN Money has put together a list of some other things lenders take into consideration before granting someone a mortgage.

For instance, borrowers can get rejected simply because not enough units have been sold in the property they're seeking. CNNMoney says both Fannie Mae and Freddie Mac adhere to the rule that at least 70 percent of units must be sold in a condominium building before granting someone a mortgage.

Another reason may be because someone's debt is too high relative to their income. The business website says that if a borrower's debt exceeds 45 percent of the money they earn on annual basis, mortgages will be denied by both Fannie and Freddie.

Most of these rules are the result of new mortgage restrictions that have been put in place. Some housing analysts say they are ultimately a good thing, while others say they're stalling recovery because so few people are approved.