If You Think You’re Not Eligible for a New Mortgage, Think Again

With the average 30-year fixed-income mortgage interest rate standing at 7.5% (up 3.88% on a year-to-year basis) and home prices still relatively high compared to historic norms, demand for new mortgages is waning.

That’s a problem for mortgage lenders looking for qualified buyers to sign on the dotted line. After all, fewer borrowers translate into a leaner bottom line.

That’s good news for buyers who figured they didn’t have the requisite credit score or down payment to earn a mortgage.

“While the overall criteria haven’t changed, the ability to get approved has become somewhat easier in recent years,” said Hall Financial Group chief executive officer David Hall. “In 2021, if you had a medium-range credit score or coming to the table with a low-down payment you may have been approved for a mortgage, but you likely wouldn’t get an offer accepted.”

.

Leave a Comment

Your email address will not be published.