A Recent article posted on Keeping Current Matters reveals what you actually need to get a Mortgage from Fannie Mae's recently released What do consumers know about the Mortgage Qualification Criteria? Study.
The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.
Here are top revelations:
- 59% of Americans either dont know (54%) or are misinformed (5%) about what FICO score is necessary
- 86% of Americans either dont know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
- 76% of Americans either dont know (40%) or are misinformed (36%) about the minimum down payment required
- There is a significant lack of understanding about minimum mortgage qualification criteria not only among consumers in general but, more importantly, among renters who plan to purchase a home within the next five years.
- Lenders are cited by consumers as the most influential source of mortgage advice, suggesting the value of working closely with lenders to improve consumers knowledge of qualification criteria. To help correct these misunderstandings, you can take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans.
FICO SCORES
BACK END DTI
DOWN PAYMENTS
Bottom Line
Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.
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