Ways for buyers to determine qualification for a mortgage
Nov 30 2011 9:00AM
Despite record low mortgage rates and home prices, many potential homebuyers are wondering if they will qualify for a mortgage. Inman.com reports that new requirements that determine who is approved or rejected have tightened over recent years.
During the housing boom, borrowers who weren't necessarily well-qualified were receiving loans when they should have been rejected, according to the source. Now it is almost the opposite, as many who should be accepted aren't receiving loans.
The online source compiled a list of rules that will have buyers determine their chances of being rejected, and will help potential homeowners know exactly where they fault.
Recent bankruptcy or foreclosure will almost always get you turned down, though there is forgiveness after a certain amount of time has passed. Buyers are also expected to make somewhere between a 20 to 25 percent down payment, and the down payment and credit score are then combined because they depend on each other, according to the source. A better credit score will also generally provide buyers with lower interest rates.