Wednesday, September 9, 2015

What Do You Really Need to Qualify for a Mortgage?

Most Folks Guess This Wrong!

A recent survey by Ipsos (a global market research company) found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

 

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.

Here are the results from a Digital Risk survey done on Millennials:


2. FICO Scores

The Ipsos survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower.

Here are the numbers from a recent Ellie Mae report:


 If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, contact me today - I will help you understand your true options.

BE SAVVY...CALL THE SMART REALTOR!
Elizabeth Scott, e-PRO, Strategic Pricing Specialist
THE SMART REALTOR
Fathom Realty NC, LLC
919-306-9699
Elizabeth@TheSmartRealEstateAgent.com
www.TheSmartRealEstateAgent.com

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