How to Prepare for a Mortgage Stress Test Amid Economic Uncertainty
What Is the Mortgage Stress Test—And Why Should Wichita Buyers Care?
If you’re planning to buy a home or refinance in Wichita, KS, there’s a crucial factor you need to consider: the mortgage stress test. Designed to protect both lenders and borrowers, this test ensures you can still afford your mortgage if interest rates rise. In today’s uncertain economic climate, passing the stress test can be the deciding factor in whether you’re approved—or denied.
As a trusted mortgage banker in Wichita, we at Randy Pitts – The Mortgage Squad guide homebuyers through the complexities of the mortgage process, including navigating the stress test with confidence.
Understanding the Mortgage Stress Test
The stress test requires you to qualify for your mortgage at a higher interest rate than the one your lender is offering. Typically, you must qualify at the greater of:
- The Bank of Canada’s benchmark rate, or
- Your contract rate + 2%
This test applies to both insured and uninsured mortgages, and can reduce your buying power by as much as 20%—especially tough for first-time buyers or those with variable income.
Why It’s More Important Than Ever in 2025
With inflation concerns, interest rate hikes, and lending rules tightening, the mortgage stress test is becoming more difficult to pass. Wichita homebuyers are facing:
- Higher interest rates than in previous years
- Tougher lender guidelines
- Increased financial scrutiny of debt, income, and credit
Many buyers are getting blindsided late in the process because they weren’t prepared for how these changes affect their eligibility. That’s where working with a local mortgage lender in Wichita, KS makes all the difference.
Tips to Prepare for the Mortgage Stress Test
As your local mortgage banker, here’s how we recommend preparing:
Know Your Numbers
Use an online mortgage calculator to estimate how much you can afford based on the stress test rate. This helps set realistic expectations early on.
Lower Your Debt-to-Income Ratio
Lenders want to see that you’re not over-leveraged. Pay down credit cards or car loans before applying.
Increase Your Down Payment
A larger down payment lowers your loan amount and improves your approval odds.
Improve Your Credit Score
Even a small credit score increase can help you qualify for better rates—impacting your stress test results.
Work with a Mortgage Broker
We have access to multiple lenders, each with their own underwriting rules. That flexibility could make or break your approval.
Why Work With Randy Pitts – The Mortgage Squad?
As a local mortgage broker in Wichita, we help you:
- Understand lender qualifications
- Prepare all documentation in advance
- Simulate stress test scenarios
- Find lenders that work with your specific financial profile
Our team works with both traditional and alternative lenders to find the best mortgage solution for you. We know Wichita’s real estate and financial landscape and use that insight to help you succeed.
Don’t Let the Stress Test Stop You—Let’s Plan Ahead
The mortgage stress test might seem like a roadblock, but with the right preparation, it’s just another step in your homeownership journey.
Talk to Randy Pitts – The Mortgage Squad today and take the stress out of your mortgage process.
About Randy Pitts – The Mortgage Squad:
Randy Pitts is a seasoned mortgage broker helping Wichita residents navigate the home financing process with clarity and confidence. Whether you’re buying your first home or refinancing, our team delivers tailored solutions and trusted guidance every step of the way.
Contact Information:
- Business Name: Randy Pitts – The Mortgage Squad
- Email: RandyPitts@leader1.com
- Phone: (316) 559-2600
- Website:
Mortgage Broker | Wichita and Topeka, Kansas
themortgage-squad.com
