HOUSTON — According to Lending Tree's latest data, H-town ranked 9th among cities with the highest mortgage denial rates in the country.
For folks who are getting denied in Houston, is rejection reason to panic?
“I would not say panic, I mean it is an answer for now, but there are things that you can do to get into position to buy a house [...] I did see there was debt to income ratios and then employment histories being the two top reasons why people do get denied,” says Kathryn Sartor with HomeLoansHTX.com.
Until we get time travel, there's not much you can do about employment history.
But as far as debt to income ratios...
“We look at what your monthly income is versus what your monthly debts are.. So then we also look at what your future mortgage payment will be. So we add all those together and we divide it by your monthly pay for your employer. So if that exceeds a certain percentage then that might disqualify you from buying a home,” Sartor said.
Things folks can do to fix that ratio? Number one, pay down some debt. Have some money just sitting around waiting for a rainy day? Well, you got denied for a mortgage loan, so it's raining!
Number two. Pick a house in a part of town with a lower tax rate. That'll lower how much you owe every month and change the equation.
Everyone knows Houston is one of the most affordable places to live. Turns out its Houston’s reputation for being affordable that may be spurring all these denials. The more folks think they can afford, the more they apply. No one thinks they can afford to own property in San Francisco, so they don`t bother applying. Maybe that`s why they ended up on the lowest mortgage denials list.
Eh, guess you can't lose if you don't bother playing in the first place.