Racial Bias Still Insidious In Mortgage Industry. Here's How You Can Try To Beat it

Racial Bias Still Insidious In Mortgage Industry. Here's How You Can Try To Beat it

Legally, race must not be a factor in mortgage lending in the United States.

However, persistently high rates of loan denials and low rates of African American homeownership tell a different story.

A 2019 Lending Tree report revealed nearly 1 in 10 borrowers get denied a mortgage.

It also found other discrepancies by race and ethnicity.

For instance, black borrowers have the highest denial rates, at 17.4%.

Non-Hispanic white Americans have the lowest rates of denial, at 7.9%.

Nevertheless, there are ways to improve your chances of getting approved for a mortgage at a fair interest rate.

According to Business Insider, start by enrolling in a HUD-approved pre-purchase home-buyer education workshop.

Clean up your credit report by correcting any errors on it.

Pay everything on time, and ensure your score is above 760.

Get your debt-to-income ratio under 36%, and amass several thousand dollars in cash savings to cover closing costs.

Good luck!