Mortgage loans Reviewing the basics
Since rates have dropped, banks have seen an increase in applications for mortgages. The percentage of applications that are approved, however, is not as high as it was prior to the credit crisis. Banks are requiring that borrowers meet more rigid requirements. In many cases, borrowers need a credit score of at least 720 to qualify for the lowest rate home mortgages. 20 percent equity in a current home or a 20 percent down payment are becoming the norm to be eligible for a new mortgage.