Two articles I read just this morning addressed the issue of potential home buyers’ fears of rejection as they pertain to mortgage financing. Each article, also spoke about the many misconceptions the public has that contribute to their fears.
The statistics quoted in these articles (per a national consumer survey by loanDepot LLC) were somewhat distressing for me as a Mortgage Lender. The most alarming were:
- Nearly half (46%) of prospective homebuyers have not pursued the financing they would need in order to buy a home due to fear they wouldn’t qualify for a mortgage
- More than half (56%) of all buyers who don’t currently own a home, but want to, indicated they’re not pursuing homeownership because they fear they won’t qualify for a loan
- Of those who want to buy a home but haven’t tried to because they think they won’t qualify, 53% think today’s qualification environment is tougher than last year.
And finally …
- Fewer than three-quarters of Americans who fear they won’t qualify admitted they haven’t actually taken any steps to find out for sure
That last statistic is a particularly frustrating one, as it seems that collectively Mortgage Lenders, the real estate industry, and news media have done a good job of delivering the message (a needed educational one, admittedly) regarding the numbers of steps and larger amount of documentation required of today’s mortgage applicants.
But we may have done too good a job. As the statistics show, potential homebuyers are now intimidated and fearful of the homebuying and mortgage process. That’s not good … nor is it the reaction we seek.
If you are hoping and wanting to buy, you shouldn’t be scared of the process you need to follow to accomplish it. And you certainly should never be scared of approaching or contacting me or your real estate professional. You should not be afraid to ask questions or perform some fact-finding.
What you find out may surprise you!
Recently I wrote a post, “What are the Requirements to Qualify for a Home Loan Today?” It offered many of the basics for mortgages and mortgage applicants as they exist currently (post written 4/28/2014).
The truth is:
- Mortgage programs are available that accept Credit Scores (in some cases) as low as 580.
- You do NOT have to put 20% Down on your home purchase
- Mortgage Programs exist for 0% Down (VA and USDA-RD loans) or as little as 3.5% Down (FHA financing)
- According to Ellie Mae: Credit standards have loosened in comparisons to one year ago. Approval rates for applications are almost 3% higher than they were (58% in March of 2014)
- Exceptions DO exist for those that suffered “Extenuating Circumstances” (Foreclosures, Short Sales, Bankruptcy, etc.)
- Sellers CAN assist with Closing Costs
- A NO received on your Mortgage Applications doesn’t have to remain a NO indefinitely
- Mortgage consultations are typically FREE. Mine, for Chicago area clients, definitely are.
Please, if you’re considering buying a home now or in the future … don’t assume you know an outcome or the answers to questions left un-asked. Find out for sure if you can buy for the first time or if you can become a “move-up” buyer.
Dreaming of Owning a Home? Potential Move-Up Homebuyer? Don’t Be Afraid! Contact me today. Together we’ll discover what facts and reality exist for you … and then move forward accordingly.
* Hoping to Buy, Construct, or Refinance a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago area? Contact Me. I’ll put my 36 years of mortgage experience and expertise hard to work on your behalf.
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