Getting Approved for a Mortgage
The guidelines for a qualifying mortgage have loosened over the last few years resulting in an increase in mortgage applications. Borrowers must still include full documentation proving their income and financials, but most of the criteria has been relaxed. An analysis by CoreLogic assessed that roughly 70% of purchased loans were conventional and that more were being approved for slightly risky borrowers.
Down payments are now down to as low as 3%. The first quarter of 2018 witnessed an uptick in down payments of less than 5% to 9% of all conventional loans, compared to 2014’s 2%. More homeowners can purchase now with a lower down payment. The debt-to-income ratio has also been increased from 45% to 50% allowing more home buyers to qualify a loan. The average debt-to-income ratio for purchase loans increased to almost 37% for 2018’s first quarter. While the requirement for good credit is still intact (an average score of 755), these stats are still great for anyone looking to qualify for a mortgage. With a national average approval rate of 88.2%, your odds for getting approved are looking good!
Contact one of our Stanford Mortgage Advisors and learn more about what your mortgage options are at (866) 912-3017.
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