Qualifying for a Mortgage in Indiana Doesn’t Have to Be as Hard as You Think
July 22nd, 2019
July 22nd, 2019
What credit score do you need to qualify for a mortgage? What down payment do you need to make? What does your debt-to-income ratio need to be?
If you are an average homebuyer, there is a good chance that your answers to those questions will be incorrect. In fact, you may overestimate how difficult it is to qualify for a competitive home loan.
Fannie Mae recently published some interesting data from a 2018 study on 3,000 respondents. This was a follow-up to a study conducted in 2015. According to their research, “Although the usage of online sources of mortgage information is becoming more common among consumers, they still overestimate the minimum credit score and down payment necessary to qualify for a mortgage and remain unfamiliar with low down payment programs.”
The misconceptions were found across the board among respondents. Even those who demonstrated financial literacy and those who had already purchased homes in the past believed that qualification criteria were more rigorous than they are.
These misconceptions can have consequences not only for consumers now, but for those same would-be homebuyers in the future. Fannie Mae states, “For some Americans who would like to own a home, they could qualify for a mortgage but may assume homeownership is not a possibility. As a result, they may avoid further research or preparations, such as saving for a down payment or improving their credit.”
These financial decisions can further delay would-be homebuyers in pursuing their goals. In fact, is it likely that many people who are still renting today have been putting off buying a home for years which they may actually be able to afford if they would just make small changes to their financial situations.
If you are thinking about purchasing a home, but you are worried that you do not meet the qualification requirements for a competitive home loan, here are some facts which are helpful to know:
Buying a home may be more affordable and achievable than you might think. Even if you do not have an ideal credit score or DTI ratio, you may be able to purchase a home. This may be true even if you cannot afford a large down payment. To find out if you are eligible for a competitive mortgage in Indianapolis or elsewhere in the state today, please call (317) 255-0062 to schedule your consultation.
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