While most people believe their credit score is the main factor for being approved for a mortgage, that is not the lenders TOP priority. FICO and PRIMA published this survey for the second quarter of 2014 that shows the DTI (debt-to-income ratio) it the main priority to lenders. Survey: Click here
When asked which factor would make them most hesitant to approve a mortgage loan application, here’s how they responded:
- High debt-to-income (DTI) ratio tops the list by a wide margin. The U.S. Consumer Financial Protection Bureau (CFPB) suggests a maximum DTI of 43%.
- The second-biggest potential red flag is if you’ve submitted multiple credit applicationsrecently, such as for a new credit card or car loan. To lenders, this means that you’re planning to take on even more debt, which could affect your ability to repay a mortgage loan.
- Low credit score comes in third.
- Frequent job changes and lack of savings round out the top five.
The full article is here
About Jay Rock Realty Associate Broker
Jason "Jay Rock Realty" born and raised in Phoenix, Arizona is top-notch real estate professional that works to ensure that sellers receive top dollar for their homes in record time, and that buyers find the perfect home for their budgets. Specializing in Phoenix, Carefree, Cave Creek, and Scottsdale real estate communities and the surrounding area. Jason has spent years working on the appraisal side of real estate transactions giving him in-depth knowledge on home values which is essential in a real estate transaction. Whether it is helping first time home buyers achieve the pride in ownership or it is helping investor's build a plan of success in a productive rewarding industry, he gets it done with enjoyable and producing methods.
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