Understand What it Takes to Qualify for a Mortgage
Many people who would like to buy their first home – and even those who already own homes and would like to relocate – are holding off on doing so because they believe their credit scores are too low and they do not have enough money for a down payment. But many of them are wrong.
Mortgage automation company Ellie Mae’s recent Origination Report should dispel that belief, since it found that the average FICO score for borrowers whose loans were closed in May 2016 was 724, with more than 30% of the scores in the 600s. In fact, less than 13% of the loans were for borrowers who had FICO scores of 800 or greater.
These findings are proof that more and more borrowers with a poor credit history have the ability to qualify for home loans. Further evidence can be found in CoreLogic’s MarketPulse Report, which provides monthly insight into the current and future health of the U.S. economic climate with particular focus on housing and mortgage metrics. Their recent report stated:
“The observed decline in originations could be a result of potential applicants being either too cautious or discouraged from applying, more so than tight underwriting as the culprit in lower mortgage activity.”
It’s time to rethink your ability to qualify.
It’s no longer true that you need a minimum credit score of 750 to qualify for a mortgage. Nor do you need a 20% down payment. If you’re among the millions of Americans who wish they could buy a home but do not believe it’s possible, stop disqualifying yourself and speak with a loan representative today. You too can own a piece of the American dream!