• Home
  • Buying
    • Eight steps to buying your home
  • Selling
    • Contact us about selling a property
    • Eight steps to selling your home
  • About
    • Proof and Results
  • Our Story
    • Realtor® Stories
  • Testimonials
  • Communities
    • Boston Back Bay
    • Dedham
    • Milton MA 02186 Real Estate YourStories Realty Group w/ KW Realty
    • Newton
    • Wellesley
    • Weston
    • Westwood
  • Blog: Truth and Service
  • Finding
    • Search
    • Deciding how much house you can afford
    • Creating your home wishlist
    • Opting for new home construction
  • What is Your Story?
  • Contact

Boston, Newton and Milton Homes | Larry Lawfer 617-774-8292

Your Stories Realty Group

Larry Lawfer

phone: 617-774-8292

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on PinterestFollow Us on YouTubeFollow Us on YelpFollow Us on FlickrFollow Us on InstagramFollow Us on E-mail
You are here: Home / Buying Myths / 2 Myths Holding Back Home Buyers

2 Myths Holding Back Home Buyers

November 18, 2019 by Larry Lawfer

2 Myths Holding Back Home Buyers | Simplifying The Market

In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also reveals,

 “Saving for a down payment is one of the biggest obstacles faced by first-time home buyers. Dispelling the 20 percent down payment myth could open the path to homeownership for many more.”

 Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to the same article:

“Americans still overestimate the qualifications needed to get a mortgage, resulting in qualified potential buyers not even considering homeownership. Indeed, the Urban Institute report revealed that 16 percent of consumers believed that the minimum down payment required by lenders is 20 percent or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may actually be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.2 Myths Holding Back Home Buyers | Simplifying The MarketAs indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Believe it or not – your dream home may already be within your reach.

Filed Under: Buying Myths, Down Payments, For Buyers, Move-Up Buyers Tagged With: first time home buyers

Copyright © 2019 · AgentPress Pro Theme on Genesis Framework · WordPress · Log in