Is buying a home on your bucket list? If so, here are some important things to consider.
According to the Housing Policy Finance Center (HFPC), unless you have a high credit profile, the chance of being rejected is nearly 1 in 3.
The strongest candidates (those with the lowest chance of being denied) have a credit score above 700, a loan-to-value ratio less than 78%, and a debt-to-income ratio less than 30%.
This means that the strongest applicants made a down-payment of at least 22%, which is more than the recommended 20%. The mortgage payment also represented less than 30% of their income, which is the traditional standard for affordability.