Are you looking to buy a house? Experts advise on getting mortgage approved
With rising home prices and strict lending standards, the path to home ownership is difficult, especially for low to median income borrowers and first time home buyers.
“You have to have some income to own a house. If the jobs are there for the community and the job stability is not there for the community, you won’t have the income to buy a house, ”said Ashford of Fresno.
While many families are keen to own their own homes, not having a down payment and having a good credit rating puts that dream out of reach.
“Life just happens,” he said.
According to data team ABC30’s analysis of Home Mortgage Disclosure Act data, in the Fresno area between 2018 and 2019, 70% of approved home loans were for white applicants. This is compared to 63% for blacks, 64 for Latinos and 66 for Asians.
However, the gap is larger in 57 of the 100 largest cities in the United States.
Steve Flach, president-elect of the Fresno Association of Realtors, says the disparity can be explained by credit history and the overall debt-to-income ratio.
“The National Association of Realtors has done studies, one of which found that African American homebuyers have a lower median income than white homebuyers. . “
Rudy Avila teaches financial literacy with MDW Credit Solutions and says before you start the home buying process, know where your credit is.
“I would take at least, you know, three months to really fix, you know as much as possible, and build as much credit as possible,” he said.
Credit scores are major considerations in loan applications, and agencies look at three factors when assessing your score.
“They want to see that you have lots of different accounts, when it comes to credit cards, secured versus unsecured loans, auto loans. Multiple accounts will look great if you’re in good standing. The next big point would be. credit usage. They want your cards report to be less than 30% per month. So if you have a limit of $ 1,000, they want your card to earn no more than 300. The third most important factor will be your payment history, ”Avila said.
Avila suggests those who don’t have a great deal of credit history to consider becoming an authorized user. You will be able to start using credit and benefit from the responsible financial behavior of the primary cardholder.
MDW Credit Solutions works with the Kings County Welfare-to-Work Program, providing a financial literacy program and credit repair assistance. They hope to bring the program to Tulare and Fresno counties afterwards.
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