I wonder if this is the reason Minnesota ranked # 1 in the Nation for Mortgage Fraud? 20% still seems high to me for denial rate. I would assume someone may not qualify for the best interest rates, but may be able to put into a higher rate mortgage instead rather than just simply denied.
This story is Edina Realty, just re-posting:
The majority of homebuyers who sought home loans in Minnesota last year were approved, according to analysis from the Wall Street Journal. In fact, the newspaper’s findings show the state had the lowest mortgage application denial rate in the country in 2010 for homebuyers seeking a new mortgage as well as homeowners trying to refinance an existing mortgage.
According to the research, which looked at data from the nation’s 10 largest mortgage lenders, Minnesota’s home loan application denial rate was 19.9 percent last year. The average rate for the entire nation was 26.8 percent – up markedly from 2009’s level of 23.5 percent.
Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says.
Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says. The mortgage application denial rate for Wisconsin and North Dakota was 23 percent and 21.1 percent, respectively – both lower than the national average.
In addition to the positive mortgage application acceptance rate in Minnesota, home loan interest rates have stayed near the same levels as at the beginning of 2011, making this year a premier time to purchase homes for sale in the state.