If you’ve gotten turned down for a mortgage in the past few years, now might be a good time to re-apply.
That’s because, according to Ellie Mae research, in July 2014, 67 percent of all mortgages applied for closed. That’s way up from six months before in January 2014 and also in July 2013, when the rate of mortgages that closed were at just 53 percent at both times.
And in part this is due to lenders easing qualifying standards, says Jonathan Corr, president of Ellie Mae, a mortgage tracker through which 20 percent of all mortgages pass.
So if you thought you didn’t have a high enough credit score or that you had too much debt to qualify for a mortgage, read on. You may be pleasantly surprised.
Reason #1: Lower Credit Score Requirements
Your credit score is one of the first things that lenders consider when deciding whether to lend you the money for a home. It not only influences what interest rate they’re willing to offer you, but also whether or not you qualify for a mortgage in the first place.
So you’ll be happy to know that the required credit scores to qualify for a mortgage have come down. In fact, in July of 2014, the average score for qualification hit 727. And although that might still seem high, consider that it has been as high as 750 in the past few years, according to Corr.
“People get worried when they see the 727 average, but they should remember that that’s just an average. You can have a lower score and still qualify,” he says. In fact, they are seeing many more people qualifying with credit scores below 700, he says. READ MORE