According to a report in the New York Times more than 2 million people who applied for mortgages last year were turned down and many more just abandoned a very complicated process. Some of the reasons were:
Insufficient Income – Applicants for mortgages need to buy homes and apply for loans in their price range and they need to have a two-year record on income. Lapses in your income because of job changes can effect your ability to get a mortgage.
Low Credit Scores – Generally if your credit score is below 620 you will be rejected for a mortgage.
Information Not Verifiable – Twelve percent of applicants for mortgages are rejected because of misinformation on applications.
Overall Financial Picture – Total debt can’t exceed 45-50% of adjusted total income.
Low Appraisal – The number one reason for a rejection of a mortgage application is a low appraisal.
Have you recently applied for a mortgage to purchase a Boston condo or a single-family home in the burbs? What were thoughts on the mortgage process?
