Perceptions or Reality? Two Myths that are Quite Confusing to First-time Homebuyers

Reblogger Michelle Carr Crowe,Altas Just Call...408-252-8900!
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty DRE# 00901962 Lic.1985
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Would you believe me if I just told you the truth? That a first-time homebuuyer with less-than stellar credit AND a lower-than-20% down payment COULD buy a home in today's market?

Keep in mind that newspapers and media sources are in the business of selling papers or obtaining eyeballs that then "buy" from the ads on their sites. 

Most news stories may be valid-yet not tell the entire story.

Get real advice from a trusted local REALTOR to find out whether you could buy a home.

Original content by Debe Maxwell, CRS 228209

Perceptions or Reality?

Two Myths that are Quite Confusing to First-time Homebuyers

2 Myths Holding Home Buyers Back

 

Fact or MythWhether or not you have student loan debt, chances are, after about 2-3 years in your post-graduate job, you’re ready to start thinking of owning your own home. Two very common myths that seem to give most new buyers pause, were recently addressed by a report from Freddie Mac, “Perceptions of Down Payment Consumer Research.”  

 

As we have addressed with our first time homebuyers in the past, their research concluded similarly, “Saving for a down payment is the largest barrier to achieving the goal of homeownership.” If you are like a large number of homebuyers, you believe that you need to put more than 20% down and you have to have a FICO® (credit) score of over 750 - in fact, nearly a third of homebuyers believe this.

 

Now, let’s debunk these two myths:

 

Myth #1: “I Need a 20% Down Payment”

 

Buyers often overestimate the funds needed to qualify for a home loan. While many homebuyers still believe at least 20% down is required to buy the home of their dreams, they do not realize that there are programs available which require as little as 3% down. Sadly, not knowing this valuable information, has kept many renters from entering the housing market. You may actually be able to enter the housing market sooner than you ever imagined! 

 

 

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

Thanks to the media, who often love putting people in ‘panic’ mode, MANY Americans believe that to be true. The truth about the FICO® score necessary to qualify is likely far less than you think. 

 

The proof is in Ellie Mae’s latest Origination Insight Report, which focuses on recently closed loans for homebuyers purchasing their dream homes. As indicated in the chart above, 52.4% of approved mortgages had a credit score of 600-749.

 

FICO Score Averages 2019

 


 

 

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.

 

Here are a few cold, hard facts:

  • The average credit score of approved loans was between 600 - 749 last month.
  • 72% of buyers who purchased homes this year have put down less than 20%.
  • 76.4% of loan applications were approved last month.

 

Don’t let common myths stop you dead in your tracks! Buy now while interest rates are still quite low. Heard any other myths you would like debunked? Let’s talk! Call or text me at (704) 491-3310.

 

© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Perceptions or Reality? Two Myths that are Quite Confusing to First-time Homebuyers

 

 

     

Charlotte Real Estate Team - The Maxwell House Group

 

  Charlotte NC Homes for Sale

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Charlotte CRS Agent


Debe Maxwell, Realtor®/Broker/CRS

RE/MAX Executive

CharlotteBroker@icloud.com
Direct:  (704) 491-3310

 

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Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

You'll never know unless you try.  Don't let negative thinking hold you back!

Jul 22, 2019 03:15 AM #1
Rainer
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Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

It is amazing how many people don’t know the facts, and it is up to you and I to set them straight. Great post!!!

 

Jul 22, 2019 01:02 PM #2
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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Georgie,

Too true! Often people quit before they ever start the home buying process.

Jul 22, 2019 01:29 PM #3
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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Bob,

That is right. The hard part is getting us into a real conversation to figure out whether homebuying is right for them.

Jul 22, 2019 01:30 PM #4
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