Countless studies indicate that potential home buyers have an inflated view of what it actually takes to qualify for a mortgage in today’s market.

The Wharton School of Business at the University of Pennsylvania’s research found that many Millennials have not moved forward with a home purchase, as it is their belief they cannot qualify for a mortgage.

A recent article published by Realtor. com explained that:

“About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy…”

The article further divulges that 29% of Millennials believe their credit scores are too low to buy.

Unfortunately, misinformation or rather lack of information seems to stifle those that might otherwise qualify for a home loan from even applying for a mortgage. Without proper guidance, many potential home buyers(not just Millennials) are erroneously under the impression that they will be denied a mortgage.

Jonas Moe, Ellie Mae’s Vice President encourages Buyers to properly explore their options, before assuming that they will not 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.”

What type of credit score does one need, in order to qualify?

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.

 

 

The Takeaway

If you have been wondering whether or not you have the ability to qualify for a mortgage and you are ready and willing to make a move… or if you are a homeowner who is looking to move up, call or text me at 727.755.3434 and I would be glad to discuss what options are available to make it happen.