ARE THESE TWO THINGS HOLDING YOU BACK FROM BUYING?

Home ownership has long been a part of the American dream, but many buyers are holding off making a purchase.  A recent article in First American shared two common misconceptions confronting many potential home buyers.  

1. I need a 20% down payment - The First American stated, "Saving for a down payment is one of the biggest obstacles faced by first time home buyers."  As a result many qualified potential buyers do not even consider home ownership.  The Urban Institute report reveals that "16% of consumers believe that the minimum down payment required by lenders is 20% or more and another 40% did not know at all."

Many potential buyers often do not realize how many assistance programs are available with as little as 3% down required.  A little research may actually enable those potential buyers to enter the housing market much sooner.

2. I need FICO score of 780 or higher - Following close behind the confusion about the down payment is what FICO score it takes to qualify for a mortgage.  Many believe a 'good' credit score is 780 or higher. 

The latest Origination Insight Report focused on recently closed (approved ) loans.  The Report showed that 50.23% of approved mortgages had a credit score 500-749.  Those with credit scores ranging between 750-799 accounted for 35.64% of approved mortgages and only 14% for those with 800+ scores.

Buying that first home or moving up to your dream home may be closer than you think.  Believe it or not your dream home may already be within your reach.