Real Estate Tips and Trends… In Search of a Mortgage
The likelihood that your mortgage application will be approved can vary significantly from bank to bank – hence, the importance of casting a wide net when shopping for a mortgage.
According to data released this month by the Federal Financial Institutions Examination Council, an interagency body of the U.S. government, home-buyer rejection rates ranged from 11% to 34% in 2012 at the 10 largest mortgage lenders.
SunTrust Mortgage (a unit of Sun Trust Bank) had the lowest rejection rate – 3,831 out of 34,749 applicants while J.P. Morgan Chase had the highest rejection rate – 26,894 out of 80,036. That’s quite a swing.
After the debacle of the last recession many large lenders require applicants to clear hurdles that surpass federal guidelines. Buyers are faced with a laundry list of questions about their finances before they even make it to the actual mortgage application. And, many are denied before they even sign an application. Home buyers who get rejected at one large bank could very well get approved by another assuming they know not to give up the search.
Lastly, in your quest for a mortgage you may also want to consider speaking with mortgage brokers who work with a variety of lenders. They can help to give you an idea upfront of whether you can get approved. Bottom line: Don’t give up!