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Why Are More Loans Are Being Denied in 2010?
So, why are more loans being denied in 2010?
Prior to 2003, underwriters were required to dot the “i”s and cross their “t”s. Then all heck broke loose and about anyone who could fog a mirror, was able to get a mortgage.Well, the pendulum has swung back the other way. Fannie, Freddie, FHA and even VA have issued more stringent rules and regulation updates in the last 24 months. The last big shake up like this was back in the early 80s, with the savings &; loan crisis! So, what are the 6 top reasons why more loans are being denied? What can you do to help your clients? Even if they can’t qualify now, we can help you turn them into home buyers somewhere down the road!
1. Low Credit Scores – Even with a big down payment and good employment history, if the credit score is under a certain threshold, the loan will be denied. The average score for the US is 693. Lenders who offer FHA and VA are imposing minimum credit scores. Credit counseling is one of the ways to increase scores so they can become home buyers in the future.
2. Lack Of Down ... more
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