Getting an offer accepted on a home — a monumental task in some markets — is only one of the initial steps in the homebuying process. For many buyers, the success of their homebuying efforts hinges on the ability to secure financing, and thousands of mortgage applications are denied each year.

Though the share of homes bought with cash is at historic highs, according to the National Association of Realtors, the overwhelming majority of home purchases are made with a mortgage. Understanding how mortgage lenders process, and sometimes deny, these loan applications can help prospective buyers succeed.

In the past several years, high home prices and mortgage rates have impacted the sale of homes and thus the demand for home loans; overall, mortgage applications for single-family, nonmanufact

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