Right now, it’s a seller’s market and there are many buyers competing for the few homes listed. Buyers need a competitive edge more than ever. Buyers who get pre-qualified are one step ahead, but getting pre-approved demonstrates to sellers that you’re in the game and serious about your offer.
How much do you think is required for a down payment? The vast majority of young renters surveyed said they plan to buy a home at some future point. So, what is preventing them from taking the plunge? A big part of it is the perception that they can’t.
Millennials consider down payment a top obstacle in getting a mortgage. Three-quarters of consumers are not aware of low down payment programs (3% to 5%), which means that many potential homebuyers are taking themselves out of the market – not because they can’t get a mortgage to buy a home, but because they believe they can’t.
It’s no surprise, in that survey, that lenders and real estate agents were the two most influential sources of information on getting a mortgage. So, together let’s tackle the information gap that is preventing Millennials from participating in homeownership.
Many potential homeowners don’t look at purchasing a home because they have incorrect information about credit scores which keep them from enjoying homeownership today. Did you know that:
Over 80% of consumers say they’ve seen their credit score, but when asked what their score is, almost half of them either say they ‘don’t know’ or they provide a number that is outside of the 300–850 score range.
Over 50% of consumers either didn’t know or got wrong the minimum credit score required for a home loan (Fannie Mae’s minimum requirement is 620; the average consumer response was 652).
A lack of understanding about credit scores and how that impacts buying a home is keeping many new home buyers out of the marketplace. Lack of understanding regarding qualification may be the road block, not the ability to qualify. Contact us today and we can recommend a professional lender to get you the facts for you.
Could your clients sell their current home and get a bigger or nicer home without increasing their monthly payment too much? Yes, and this “Smart Move” opportunity happens when:
Many people buy their first home with little money down and not always with the best credit score, resulting in a higher interest rate and PMI. As homebuyers become more established in life be sure to talk to them about the opportunity to sell their current home, get a nicer or larger home, and take advantage of their current equity to make it all happen.