AsurveybyIpsosfound that the American public is still somewhat confused about what is required to qualify for a home mortgage loan intoday’s housing market. There are two major misconceptions that we want to addresstoday.
1. Down Payment
The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 40% of consumers think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less. Many renters may actually be able toenter the housing market soonerthan they ever imagined with new programs that have emerged allowing less cash out of pocket.
The survey also revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a“good credit score”is over 780. In actuality, theaverage FICO®scoresof approved conventional and FHA mortgages are much lower. The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below shows the distribution of FICO®Scores for all loans approved in February.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, we'd love to visit with you about your options. You can visit us online at www.MortgageXLoan.com to explore some of our programs. Ready to go give us a call 972-668-(LOAN).
Author:Raymond Edler Phone: 214-552-2091 Dated: April 3rd 2017 Views: 130 About Raymond: ...
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