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    What does it take to qualify for a mortgage today?


    Many Americans are still confused about what is required to qualify for a home loan (mortgage) in today’s market.
    A recent survey by Ipsos revealed there are two major misconceptions…

    Down Payment

    Many consumers think they need 20% down payment in order to buy a house. In fact, 40% of those surveyed confirmed they overestimate the funds needed to qualify for a mortgage. In reality, there are many loans made today with a down payment of 3% or less.

    Many potential buyers, whether they be renters or homeowners today, are still saving their money before making a move. The fact is they could enter the housing market sooner with new loan programs that allow for much less cash out of pocket.

    FICO® Scores

    More than 60% of all survey respondents believe they need excellent credit to buy a home, when less than 12% of home buyers actually had excellent credit (over 800). Most buyers had good credit and survey respondents thought good credit started at 780, when in reality it’s 750-800. In fact, FHA mortgages closed with an average credit score of 686.

    The average across all loans closed in February was 720. The chart at the top illustrates the distribution of FICO® Scores for all loans approved in February.

    Bottom Line

    If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options.

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    About our blog

    Our agents write often to give you the latest insights on owning a home or property in the North Metro Atlanta area.

    Cheryl Cloud

    Cheryl Cloud NMLS# 545242

    Senior Mortgage Originator
    BankSouth Mortgage
    175 Townpark Drive, Ste 125
    Kennesaw, GA 30144
    Visit my website
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    Mobile: (404) 310-3753
    Fax: (678) 680-5677

    Let me know how I can assist you with your North Metro Atlanta mortgage needs. I am here to help!

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