2 Myths Holding Back Home Buyers

2 Myths Holding Back Home Buyers | MyKCM



In a recent article, First American shared how millennials are not really any different
from previous generations when it comes to the goal of homeownership; it is still
a huge part of their American Dream. The piece, however, also reveals,

“Saving for a down payment is one of the biggest obstacles faced by
first-time home buyers. Dispelling the 20 percent down payment myth could open 
the path to homeownership for many more.”

 Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to
the same article:


“Americans still overestimate the qualifications needed to get a mortgage,
resulting in qualified potential buyers not even considering homeownership.
Indeed, the Urban Institute report revealed that 16 percent of consumers
believed that the minimum down payment required by lenders is 20 percent
or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home
of their dreams, they often don’t realize how many assistance programs are available with
as little as 3% down. With a little research, many renters may actually be able to enter
the housing market sooner than they ever imagined.

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


In addition to down payments, buyers are also often confused about the FICO® score
it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.
To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report,
which focuses on recently closed (approved) loans.2 Myths Holding Back Home Buyers | MyKCM
As indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line



Whether buying your first home or moving up to your dream home, knowing your options
will make the mortgage process easier. Believe it or not – your dream home may already be
within your reach.
Contact me and land my team and I will find you a home of your choice, and make the transaction process smooth.

Asifa Zia- Realtor. MRP
Licensed in VA  
Member of NAR, VAR, PWAR
Pearson Smith Realty LLC
43777 Central Station Dr #390, Ashburn, VA 20147
Offices in Fairfax, Woodbridge, Sterling, Leesburg VA

Cell:540-729-3470
Office:(571) 386-1075
Fax:571-386-1081


Find out what is your home worth Click Here

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