If you have been putting off purchasing a home because you’re concerned that your financial metrics are not up to par, you might want to reconsider. It turns out that many homebuyers across the country make the mistake of believing that purchasing a home is more challenging than it really is. That applies to homebuyers in the Tri-Cities area as well.
Fannie Mae conducted a study in 2018 with 3,000 consumers participating. They made the following discovery:
“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.”
Furthermore, they added:
“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.”
Even if you are financially literate, it is possible to make these types of overestimations. Indeed, Fannie Mae found that financial literacy did not prevent would-be homebuyers from thinking that their goals were out of their reach.
This falls in line with some of what we have been noticing lately with consumers in and around the Shoals. In fact, we have even written some recent posts to address some of these types of misconceptions.
- It is common for homebuyers who cannot afford large down payments to believe that they cannot purchase a home. But down payments even for conventional loans can be as low as 3%, as discussed in detail in this post. There are also FHA mortgages with 3.5% down payments and USDA and VA loans with zero down payment required.
- Thanks to the way that student debt is calculated during the application process for a mortgage, this also does not need to stand in your way of purchasing a home. Learn more in this post.
- You do not need a high credit score to qualify for a competitive mortgage with affordable interest rates. If you apply for the FHA loan program insured by the Federal Housing Administration, you may be approved with a credit score of just 500.
- To address a range of perceived barriers to homeownership, we have published a post of solutions for common first-time homebuyer obstacles.
Think you might be ready to purchase a home after all? Schedule a consultation with GoPrime Mortgage today. To find out whether homeownership may be within your grasp, please call (256) 690-5132 or email firstname.lastname@example.org.