Many potential home buyers believe that they need a 20% down payment and a 780 FICO score to qualify to buy a home, which stops many of them from even trying! Here are some facts:
- 40% of millennials who purchased homes this year have put down less than 10%.
- 76.4% of loan applications were approved last month.
- The average credit score of approved loans was 724 in September.
Everyone’s situation is different. That is why it is extremely helpful to work with excellent real estate professionals. Choose a Realtor who will listen to your goals and work within your budget, and a mortgage lender who will consider all the relevant facts of your situation when determining how much you qualify to borrow. I work with several excellent local lenders who do just that.
I recently spoke with one lender who was able to qualify a borrower who had a credit score below 520 – and no, that’s not a typo. For others, their company sets a qualifying score of 580 or 620. These lenders also offer loans that can cover the down payment, required repairs, and more. All of these are at competitive interest rates. Of course, borrowers with better credit scores will generally get better interest rates.
The Bottom Line
If you believed some of these myths, rest assured that you are not alone. Before making decisions based on possibly out of date or incorrect understanding, call on a team of real estate professionals who can set the record straight and help you reach your goals. When you know the facts, buying a home isn’t scary!
You might also enjoy:
- Your real estate success story
- Is it too easy to get a mortgage?
- How Accurate is Zillow?
- Does your Realtor do this?
Aaron Lovett is a full-service Realtor in Smyrna, TN, working out of the regional office of Weichert Realtors, The Andrews Group in Murfreesboro, TN. His service area includes Smyrna, Murfreesboro, the remainder of Rutherford county and surrounding areas, including Nashville and Davidson county. He cares for the needs of sellers, buyers, and investors. Aaron has lived in the area for over a decade. He takes pride in helping home buyers and sellers reach their real estate goals.