Single women are 30% more likely to be denied a mortgage — but improving debt-to-income ratio could change those odds

Core Insights - Young single women are increasingly entering the housing market, representing 21.9% of potential homebuyers as of 2024, but face significant barriers in mortgage approval compared to men [1] - Single female applicants are 29.8% more likely to be denied a mortgage than their male counterparts, with the highest disparities observed in Southern states like Louisiana, Mississippi, and Alabama [2] Mortgage Approval Process - The first step in applying for a mortgage is obtaining preapproval, which provides an estimate of affordability and signals seriousness to sellers [3] - Preapproval does not guarantee mortgage approval or the same terms as quoted, necessitating close collaboration with mortgage officers to understand potential variations [4] - The mortgage application process involves a thorough assessment of credit history, employment, income, debts, and assets, along with a review of the property [4] Underwriting and Debt-to-Income Ratio - The underwriting process is crucial, with an underwriter making the final loan decision, heavily influenced by the applicant's debt-to-income (DTI) ratio [5] - A DTI ratio of 43% or less is typically required for mortgage approval, and applicants with higher ratios may need to reduce existing debt to improve their chances [6]