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2 MYTHS THAT MAY BE HOLDING BACK BUYERS

Monday, January 30, 2017   /   by Susan O'Hara

2 MYTHS THAT MAY BE HOLDING BACK BUYERS


2 Myths That May Be Holding Back Buyers | MyKCM



Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria, revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgage qualification criteria.


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, but many 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 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 Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.7% of approved mortgages had a credit score of 600-749.


2 Myths 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 make the mortgage process easier. Your dream home may already be within your reach.


Global Property Systems
Vanessa Saunders MBA MIMC CIPS - NYS RE Principal Broker
56 Lafayette Avenue Suite 320
White Plains, NY 10603
914-290-5258

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The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2020 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.
The data relating to real estate on this website comes, in part, through the IDX of the Multiple Listing Service of Ulster County, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the IDX logo and detailed information about them includes the name of the listing broker.