November 9 2010 (Chris Moore)
In a survey conducted by the Professional Insurance Brokers Association (PIAB), mortgage brokers claim mortgage lenders are rejecting eight out of ten home loan applications in the United Kingdom.
The survey also found that 77 percent of mortgage brokers believe the mortgage crisis is “worse” or “much worse” than last year.
So you’re probably wondering how bad things are on this side of the pond? Well, I looked high and low and found that information hard to come by. I did find this: 36.1 percent of black applicants and 31.1 percent of Hispanics seeking mortgages for home purchases were turned down in 2008, compared to 13.6 percent of whites and 18.7 percent of Asians. That information was through 2008 and though things have changed a lot since then as underwriting guidelines has gotten stricter that data was from the height of the housing crisis.
However, we doubt that those numbers have climbed significantly since the amount of homes that are being sold and refinanced are far less than the boom years and unfortunately it can be said that because of the current economic crisis, far less people are also capable of securing a loan too.
All the more reason to check your credit report for any blemishes, run your debt-to-income ratio numbers, put assets in the bank, hold a steady job, and clear up any potential roadblocks long before applying for a mortgage.
Planning for your future begins today.
Tags: mortgage lenders, rejections, mortgage, home loan, applications, mortgage crisis