Many believe that when you have a good credit score (an excellent score is in the 700's) it positions you to have access to the best borrowing rates ( the best loans) which ultimately can help you better afford the goals you want to achieve today, and in the future.
But did you know that, in actuality, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.
You may be surprised how much the requirements for a mortgage have eased!
Check out the chart!!!
Understanding a personal credit score is part and parcel of understanding your overall credit health and it can pave the way to being more financially empowered and also affording life’s milestones.
Enjoy the Video (click on this link: http://wgntv.com/2015/04/20/your-money-matters-understanding-your-credit-score/#ooid=5hMm1tdDrsn1gE0Lxr8yIZ-hU80cYOVf) and if you have any questions or need more information, call/text/email me. :) Monica Mancano, REALTOR®, MRP, AHWD, Century 21 Affiliated
What FICO Score is Needed to Buy a Home? by KCM Crew
In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some Millennials are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage.
The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos :
“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”
So what credit score is necessary?
A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.
In actuality, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.
Millennials who are considering a home purchase should get advice from a local real estate or mortgage professional now. They may be surprised how much the requirements for a mortgage have eased.
My Real Estate Dream Team and I are here for you!