InRealtor.com’srecentarticle, “Home Buyers’ Top Mortgage Fears: Which One Scares You?” they mention that “46% of potential home buyers fear they won’t qualify for a mortgage to the point that they don’t even try.”
Myth #1: “I Need a 20% Down Payment”
Buyers overestimate the down payment funds needed to qualify for a home loan. According to theFirst Quarter 2017 Homeownership Program Index(HPI)fromDown Payment Resource,saving for a down payment was the barrier that kept 70% of renters from buying.
Rob Chrane,CEOofDown Payment Resourcehad this to say,
“There are many mortgage-ready renters today, but they don’t know it. Often, homebuyers remain sidelined for years due to the down payment.”
Many believe that they need at least 20% down to buy their dream home, but programs are available that allow buyers put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
Myth #2: “I Need a 780 FICO® Score or Higher to Buy”
The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO® score is necessary to qualify.
Many Americans believe a ‘good’ credit score is 780 or higher.
To help debunk this myth, let’s take a look atEllie Mae’slatestOrigination Insight Report,which focuses on recently closed (approved) loans.
As you can see in the chart above,53.2%of approved mortgages had a credit score of 600-749.
Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.
Source: "The KCM Crew" http://www.keepingcurrentmatters.com/2017/06/26/2-myths-holding-back-home-buyers/
Author:Robin ONeal Phone: 214-245-9068 Dated: June 27th 2017 Views: 139 About Robin: ...
View our latest blog posts in your RSS reader. Click here to access.
WHO WE ARE
SCOTTIE SMITH II & ASSOCIATES is one of Dallas/Fort Worth’s fastest growing boutique brokerage firms. We are located in the historic Deep Ellum District of Dallas, Texas and focus on addressing the needs of home buyers, sellers, and investors. We do more than close real estate transactions; we help our clients build wealth and restore communities!
Which Comes First… Marriage Or Mortgage? According to the
"Robin is an amazing realtor. So amazing that she turned into a friend during the process. She is always honest and straight forward. Say no more when it comes to buying a home! Robin is who you need in your life!"