Racial Bias Still Insidious In Mortgage Industry. Here's How You Can Try To Beat it
- 4 years ago
Legally, race must not be a factor in mortgage lending in the United States.
However, persistently high rates of loan denials and low rates of African American homeownership tell a different story.
A 2019 Lending Tree report revealed nearly 1 in 10 borrowers get denied a mortgage. It also found other discrepancies by race and ethnicity.
For instance, black borrowers have the highest denial rates, at 17.4%. Non-Hispanic white Americans have the lowest rates of denial, at 7.9%.
Nevertheless, there are ways to improve your chances of getting approved for a mortgage at a fair interest rate.
According to Business Insider, start by enrolling in a HUD-approved pre-purchase home-buyer education workshop.
Clean up your credit report by correcting any errors on it. Pay everything on time, and ensure your score is above 760.
Get your debt-to-income ratio under 36%, and amass several thousand dollars in cash savings to cover closing costs. Good luck!
However, persistently high rates of loan denials and low rates of African American homeownership tell a different story.
A 2019 Lending Tree report revealed nearly 1 in 10 borrowers get denied a mortgage. It also found other discrepancies by race and ethnicity.
For instance, black borrowers have the highest denial rates, at 17.4%. Non-Hispanic white Americans have the lowest rates of denial, at 7.9%.
Nevertheless, there are ways to improve your chances of getting approved for a mortgage at a fair interest rate.
According to Business Insider, start by enrolling in a HUD-approved pre-purchase home-buyer education workshop.
Clean up your credit report by correcting any errors on it. Pay everything on time, and ensure your score is above 760.
Get your debt-to-income ratio under 36%, and amass several thousand dollars in cash savings to cover closing costs. Good luck!