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The housing market has seen a substantial rise in mortgage rates since the start of 2022. The increase in mortgage rates leads to an increase in the amounts of monthly repayments. In turn, it brings loan approval challenges.

Before approving you for a loan, mortgage lenders check your income to debt ratio. For instance, to get approved for a competitive loan, your housing costs should be less than 28% of your income. When rates are high, the monthly payments will also increase making you less eligible for approval.

Wondering how to get approved? Read on for loan qualification tips.

What Are the Mortgage Rates as of April 2022?

For the first time in three years, the average mortgage rate for a 30-year fixed mortgage hit 5.13% in April 2022 according to Freddie Mac. This is a fast increase compared to December 2021’s 3.11% mortgage rate for the same 30-year fixed mortgage

As a highly used refinancing option, the 15-year fixed-rate mortgage rose from 3.91% to 4.4% at the same time. Ultimately, the rates have risen by a percentage of 1.24 points and it is 1.89 points higher compared to December 2021

Looking at the 5/1 ARMs which is an adjustable-rate type of mortgage, its current rate is 3.78%. This loan allows you to pay the initial rate for the first five years after which the rates start adjusting according to the market rates. So if the rates continue rising, the cost of the loan goes up too.

Loan Qualification Tips Amid Rising Mortgage Rates

Although the rates have gone up, it is possible to qualify for a mortgage. Here are tips to help you get qualified.

Put Your Finances in Order

With the rising rates, getting your finances in order can help you get qualified. Focus on improving your credit score and fattening your savings account. A good credit score will help you qualify for a loan with better rates compared to a lower credit score.

To build your credit score, ensure you pay off other debts and pay your bills on time. Doing so will also improve your DTI which is an important metric to lenders. When you have a higher income than debt, you are in a better position to qualify.

Get Pre-Approved

With your finances in order, you need to get pre-approved against the new rates. For some buyers, they may have qualified under the initial rates but that may change due increase in rates.

Pre-approval not only helps you to view houses you can afford, but it also lets you know your loan limits so you can make the necessary adjustments. In turn, you stand better chances of qualifying for a mortgage.

Secure a Mortgage With the Above Loan Qualification Tips

Although the current mortgage rates have made it more challenging to qualify for loan, you stand a better chance by preparing your finances. More importantly, work on your credit score to help you get better mortgage rates.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm) or visit our website @ A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore

CalPATH Division Manager

NMLS #333648″

Links to External Sources: 

  1. Mortgage rates according to Freddie Mac
  2. 15-year mortgage rates