Gig workers face income verification challenges
- Top reasons for mortgage rejection: high debt-to-income ratio, low credit score, insufficient reserves
- 48% of rejected buyers had too much debt relative to their income
- 21% of rejections due to low credit score
- 16% of rejections due to insufficient reserves
- 10% of rejections due to unverifiable income
According to a new report by the National Association of Realtors, aspiring homeowners are being rejected for mortgages due to several common reasons. The top reasons include having a high debt-to-income ratio, a low credit score, and insufficient reserves. Nearly half of the rejected buyers had too much debt relative to their income, while 21% had a low credit score and 16% lacked sufficient reserves. Additionally, 10% of prospective buyers faced rejection due to unverifiable income, which is a common issue for gig workers. It’s important to note that these findings are self-reported and may not be the only reasons for rejection. However, they provide valuable insights into the challenges faced by home buyers in securing a mortgage.
Public Companies: National Association of Realtors (null), LendingTree (null), Fannie Mae (null)
Private Companies:
Key People: Jessica Lautz (Deputy Chief Economist and Vice President of Research at the National Association of Realtors)
Factuality Level: 8
Justification: The article provides information from a report by the National Association of Realtors on the top reasons lenders reject mortgage applications. It includes quotes from Jessica Lautz, deputy chief economist and vice president of research at the NAR, providing further context. The article also mentions the high mortgage rates and their impact on home buyers. However, the article does not provide any counterarguments or perspectives from lenders, and the data is self-reported, which may introduce some bias.
Noise Level: 7
Justification: The article provides information on the reasons why aspiring homeowners are unable to get a mortgage. It cites a report by the National Association of Realtors and includes quotes from experts. However, the article lacks data or evidence to support its claims and does not provide actionable insights or solutions for prospective home buyers.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the challenges faced by prospective home buyers in obtaining a mortgage, which can have implications for the real estate market and lending institutions.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article does not mention any extreme events or their impacts. It focuses on the reasons why mortgage applications are rejected for aspiring homeowners.
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