Lending Tree recently released a report discussing where mortgages are denied the most often. There are several reasons why a person can be denied when applying for a mortgage. For instance, they can be rejected because their credit score is too low or their debt-to-income ratio. The report concluded that the leading rejection cause in top cities was the debt-to-income ratio. Also, the report concluded that 1 in 10 borrowers get rejected for mortgages. Finally, the national average of denial is 9.8%.
WHERE ARE MORTGAGES BEING DENIED THE MOST?
According to the report, four of the cities with the highest denial rates are in Florida. Miami had the highest denial rate at 12%. Orlando had the second highest rate at 11%. Similarly, Tampa Bay followed with a denial rate of 9.5%. Additional cities that were noted with high rejection rates were Detroit and Birmingham. The market with the lowest denial rate of 4.6% is Minneapolis, Minnesota. Lending Tree chief economist Tendayi Kapfidze stated, “the low denial rate is encouraging, though some of this is because the financial profile of mortgage applicants has improved.” Additionally, Kapfidze stated the key for homebuyers is to be well-educated on the homebuying and mortgage process.
To read the full Lending Tree report and learn more click here.
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