Mortgage lenders rejecting more applications

Following the recession, many banks have been reviewing mortgage applications much more carefully and rejecting a higher proportion than before, according to The New York Times.

The paper says data from the Federal Financial Institutions Examination Council shows that lenders denied more than 2 million people last year, and many more decided to drop out of the sometimes complex process. Overall, the Mortgage Bankers Association says about 50 percent of those refinancing and 30 percent of new home buyers don't complete the process.

Among the reasons for many of the denials, mortgage experts told the paper, are low income levels, low home appraisal figures or poor credit reports.

"If you have late payments within the last 24 months on," Marisol Torruella, a loan originator with the New York Municipal Credit Union, told the Times "the likelihood of getting another mortgage is less."

Those interested in applying for a mortgage may also want to review their credit reports for any problematic items that may be holding down their scores. Those marks could have a negative impact on their changes at getting loans.