2 Myths About Mortgages That May Be Holding Back Buyers

Are you confused about how much down payment you need for a mortgage or what your FICO score needs to be?  For that matter what is a FICO score??  These are questions Fannie Mae posed to consumers and found out that most Americans are misinformed on the answers.  Read the article before and then wow your friends with your knowledge of the mortgage industry.  As with your real estate transaction though, make sure you use a professional mortgage broker when you are ready to apply for a mortgage.  I know some very good ones, give me a call and I will set you up with the best in the industry.  Always best to have the professionals on your side!

Courtesy of Keeping Current Matters 2017

2-Myths-STMFannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” Study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.

Myth #1: “I Need a 20% Down Payment”

Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

2 Myths About Mortgages That May Be Holding Back Buyers | MyKCM

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

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 at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.

2 Myths About Mortgages That May Be Holding Back Buyers | MyKCM

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a home of your own.  Make sure you contact professionals to help you on your journey.  Give me a call and I will ease the trip for you!

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