According to a new study by loan exchange website Lending Tree, nine percent of mortgage applications in Greater Houston are denied.
That ranks it ninth in the country.
Why is that?
Tendayi Kapfidze, chief economist at Lending Tree, said the fact that a more expensive city such as New York has a much lower denial rate may be because in those places, many people may not even try to get a mortgage loan.
“In a more affordable city,” he said, “people might actually feel a little bit more optimistic that they have a decent chance of getting approved for a mortgage and might actually apply more.”
Kapfidze said Houston’s fast population growth may also play a role in boosting the number of overall applications.
Debt is the top reason for mortgage denial in Houston.