The top reasons mortgage loans are denied bismarcktribune.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bismarcktribune.com Daily Mail and Mail on Sunday newspapers.
The Top Reasons Mortgage Loans Are Denied
Lattice, provided by
FacebookTwitterEmail
Photo Credit: Alamy Stock Photo
Although interest rates have inched up recently, they remain at historic lows, spurring demand in both home purchases and mortgage refinancing. However, many lenders have tightened up their borrowing standards due to the economic uncertainty of the pandemic, and hopeful loan applicants may find it hard to get approved. According to loan-level mortgage data from the
Home Mortgage Disclosure Act, the denial rate for conventional, single-family loans was 18.8% (excluding withdrawn and incomplete applications) in 2019.
Mortgage application denial rates vary by purpose of the loan. When considering total loan applications for conventional, single-family loans, 2,055,774 applications were denied. At 43%, denial rates were highest for home improvement loans. Loans for home purchases had the lowest denial rate, at just 10%. Refinancing applications, both with and withou