The results of countless studies have shown that potential home buyers, and
even current homeowners, have an inflated view of what is really required to
qualify for a mortgage in today’s market.
One such study by the
Wharton School of Business at
the
University of Pennsylvania revealed that many millennials
have not yet considered purchasing homes simply because they don’t believe they
can qualify for a mortgage.
A recent
article
about millennials by
Realtor.com explained that:
“
About 72% of aspiring millennial buyers said they’re waiting because
they can’t afford to buy…”
The article also explained that
29% of millennials believe their credit
scores are too low to buy. The problem here is the fact that they
think
they will be denied a mortgage is keeping them from even
attempting
to apply.
Ellie Mae’s Vice President Jonas Moe encouraged buyers to know
their options before assuming that they won’t qualify for a mortgage:
“Many potential home buyers are
‘disqualifying’ themselves. You don’t need a 750 FICO® Score and a 20%
down payment to buy.”
So,
what credit score is necessary?
Below is a breakdown of the FICO® Score
distribution of all closed (approved) loans in July from Ellie
Mae’s latest Origination Report.
Over 52% of all approved loans had
a FICO® Score under 750. Many potential home buyers
believe that they need a score over 780 to qualify.
Bottom
Line
If owning a home of your own has
always been your dream and you are ready and willing to buy, or if you are a
homeowner who wants to move up, find out if you are able to! Call me today
& be as delightfully surprised as many of my other clients.
Elizabeth
Elizabeth Scott, Realtor®, Broker
Diamond Award – High Sales Volume
e-PRO,
Strategic Pricing Specialist
Fathom
Realty NC, LLC
Phone: 919.306.9699
Elizabeth@TheSmartRealEstateAgent.com
