Home School: Mortgage Misconceptions Are Widespread
We live in the age of “instant expertise.” The internet puts (literally) millions of articles and opinions at your fingertips, but recent results of a Fannie Mae (FNMA) survey show consumer understanding about what it takes to qualify for a mortgage is lacking among the majority of Americans – even current homeowners.
Respondents who did not know that the minimum FICO score to qualify for a mortgage is 580:
Respondents who believe the minimum down payment on a mortgage is more than the actual zero to five percent:
85% of respondents don’t know the maximum percentage of debt to income allowed to qualify for a mortgage is fifty percent.
Understanding what it takes to qualify for a mortgage is important before you’re thinking about or are in the process of buying a home, as well as after you own one. Mortgage eligibility is a reasonable standard that everyone should understand and aspire to reach and maintain.
Mortgage 101: Who needs to understand mortgage qualification requirements – and why?
Mortgage Readiness: How do I get (and stay) mortgage-ready?
For most people, their home is the centerpiece of their financial scenario as well as their biggest asset. In the years since the housing crisis of the late 00s, mortgage loan officers have become valuable advisors and counselors to renters and homeowners alike. In addition to helping renters get on the path to homeownership, loan officers serve homeowners with reviews and advice to help ensure their mortgages are the best available as rates, equity and personal finances shift and evolve.