Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Here are three takeaways:

• 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary
• 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
• 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required

To help correct these misunderstandings, let’s take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans.

FICO SCORES

BACK END DEBT-TO-INCOME RATIO(DTI)

DOWN PAYMENTS

Bottom Line

Whether you are a first time home or move-up buyer, knowing your options will undoubtedly make the mortgage process easier. With that being said, start off on the right foot and be sure to speak with a professional Mortgage Broker about what options might best suit your needs. Your dream home may already be within your reach!!