Even though the average mortgage rate remains below 5.5%, it doesn’t mean that more people are getting mortgages. Indeed, they may want mortgages, but getting approved remains difficult. Even with the housing market stabilizing, there are still concerns about whom mortgage lenders approve. Mortgage News Daily reports on the difficulties involved in getting a home mortgage loan:

“Rates may be low, but I think lenders are still being very cautious,” she said recently. “Lenders are just being careful about who they lend to.”

Mortgage News Daily Editor Adam Quinones expands…

“Additional lender underwriting guideline overlays, the entire HVCC process, generally falling consumer FICO scores, and  risk based loan level price adjustments are just a few factors adding additional hurdles to the loan qualification process.“

Additionally, adjustable rate mortgages are once again threatening to rise in popularity. For the first time in months, interest rates on ARMs have dropped below the rates on fixed rate mortgages. This means ARMs are becoming attractive again. Home buyers and mortgage lenders may decide that the lower rates may help get some approved for home mortgage loans.

In the end, while you can get a great deal, you need to be aware of the lending standards you need to meet in order to get approved for a home mortgage loan: Higher credit score, lower debt, a down payment of at least 5%, and a steady income.