What Do You Really Need to Qualify for a Mortgage?

by Hilton Head Real Estate Partners September 11, 2015 0 comments
Buyer Resource, Buying a home, Buying a house, Home Buyer Resources, Millennials, Mortgage Rates

What-You-Need-KCM

A recent survey by Ipsos 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:

 

Millennials-KCM2

 

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:

FICO-Score-KCM

 

Bottom Line

 

Contact Jo Anne or Tony Rizza at 843-301-5825 to understand the options available to you.  Great real estate properties in the Hilton Head Island/Bluffton area are waiting for you!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

by Hilton Head Real Estate Partners September 11, 2015 0 comments
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