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Is it easier to get approval for a mortgage loan by putting down more money?

I want to put down 20% for a conventional loan so that I can avoid PMI by SBernard from Midvale, Utah. Feb 20th 2013 Reply


Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

Common wisdom is that the more you put down the easier it is to get approved. I've actually had deals that I could not get approved at 80% but could get approved at 85%. Why? The required PMI actually made for a safer deal for the bank investor. Keep in mind that a larger down payment does not necessarily make up for other inherent weaknesses in your financial picture. As long as you have good credit and your ratios are within tolerances, you should be able to get an 80% LTV and avoid mortgage insurance. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Feb 20th 2013
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

Hello, putting more money definitely helps - but there are other factors as well that are taken into consideration - credit, debt-to-income, etc. I am in Midvale and would love the opportunity to earn your business. I will look over your specific situation and give you a quote and good information without obligation. Call me at 801.550.1222. Linda

Feb 20th 2013
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Benjamin Bote (Benjamin)
#806 ranked lender in California - 20 contributions

In the sense of debt to income ratios, yes.

Feb 20th 2013
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Cory Ure (coryure)
#46 ranked lender in Utah - 50 contributions

Hi SBernard. In mortgage lending three critical areas are looked at: Credit history (your credit score and any late payments), capacity to repay the loan (your income) and collateral (the loan-to-value and thus the lender's position in the deal in case of default). All three criteria must be satisfied to get a mortgage loan, and there are sub-factors within each category, such as length of employment, self-employed or not, bankruptcy in the past, etc.That is the long answer. The short answer would be to give me a call and we can go over your particular scenario and see what you'll qualify for or if there are any hurdles that have to be cleared before you'll qualify. My office in is South Jordan, and I can be reached at 801-508-5631 or after hours at 801-971-7916.Warmest regards,Cory

Feb 20th 2013
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Ray Lewis (RayLewis)
#0 ranked lender in Texas - 35 contributions

Larger down payments do help, however you still must qualify with a certain credit score, income and assets. If you have 50% down, but have a 450 credit score you still wouldn't qualify. I would be more than happy to walk you through the process. Please contact me at: Ray 254-449-7196 or rlewis@englending.com

Feb 20th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

Besides the accurate comments on debt-to-income ratios, putting 25% down on a conventional loan will often reduce your interest rate or closing costs. I'm a mortgage banker in NM and lend in NM only but my co. lends in several western states. Contact me if you'd like more information: www.gencormortgage.com/csparks NMLS# 195031

Feb 20th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

you can avoid MI by putting 20 percent down however I have another program that has no MI with only .3% down and No MI. I'm right here in Midvale is well in Union Park and you can always call me on my cell at 801-971-6901 or go to my website at www.UtahIendingpro.com

Feb 20th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,620 contributions

Not necessarily... Most lenders based their approvals on industry guidelines regarding credit score, type of credit, employment, income and debt... you can get a better rate if you lower the loan to value, but putting more down will not in itself make it easier for you to get approved... If you goal is to get a loan and not pay mortgage insurance, then yes.. 20% down on an owner occupied home will be sufficient to waive PMI.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Feb 20th 2013
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Casey Persinger (casey@thelowpricelender.com)
#31 ranked lender in Utah - 30 contributions

SBernard,All the answers have been given are true. I like the rest of the MLO's who have answered your question would love the opportunity to serve you with your mortgage needs. I have an "A" rating with the Better Business Bureau, am licensed to serve your needs in Utah and am happy to give you several letters of recommendation as to how I have treated my clients. My name is Casey Persinger and I can be reached at 801-682-LOAN (5626)

Feb 20th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

You would think that more money down reduces the risk to the bank. but its not always easier. Speak to your loan officer about all the other factors that will come into play.

Feb 20th 2013
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Eric Blossman NMLS 211144 (eblossman)
#116 ranked lender in Texas - 63 contributions

Yes, I agree.. Not necessarily. It all comes down to credit and debt ratios these days. The underwriting of your loan is consistent whether or not you put 20% down, or 50% down. If you have a score over 640, and you have little to no credit derogatories coupled with a decent debt ratio you should be ok. The best thing to do is to get pre-approved from a local lender.

Feb 20th 2013
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Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,876 contributions

Yes and no... It depends on the overall picture. For example, a standard conventional loan will need a credit score of 660 regardless of the size of the down payment. On the other hand someone with a 660 would not qualify for a 5% down conventional loan, but WILL qualify with 20% down. www.SPaul-Mortgage.com

Feb 21st 2013
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Greg Caton (GCATON12)
#69 ranked lender in Utah - 5 contributions

It is not necessary, and if you can afford the monthly PMI it is always better to keep your money in the bank. I am a lender here in Midvale Utah and we always suggest to put down as little as possible and keep you hard earned money where you can access it easily.We are located in Union Park so feel free to call me at 801-664-2393 or email me at gregory.caton@snmc.com.

Feb 21st 2013
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Tyler Whyburn (OklahomaMortgage)
#21 ranked lender in Oklahoma - 24 contributions

The amount of money you are putting down as well as your loan amount should not make pre-approval any easier or more difficult. Things like your credit profile and income will have the most baring.

Feb 21st 2013
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Robert Hanson (rhanson)
#38 ranked lender in Maryland - 646 contributions

Lowest rates. Best Service. 20 years experience in the industry. I am always happy to assist so if you need more information, a pre-qualification, or a competing rate quote you can go to my web page and use my live support button to discuss anything at all with me in an easier format. Web Address is: http://www.loansfromrob.com/quote/ Email is rhanson@gladewaternational.com and direct phone is 240-752-7549. Good Luck -- Rob Hanson

Dec 10th 2013
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