Many first time home buyers, or individuals that have been out of the real estate market in Tempe for some time, are under the impression that an impeccable FICO score is needed in order to qualify for a mortgage when purchasing a home. One recent study revealed that this is actually a big reason why many younger individuals are shying away from purchasing real estate in Tempe, or anywhere else in the country for that matter. They’re under the impression that their credit isn’t good enough to purchase real estate in Tempe. Because of this, unfortunately, they don’t even attempt to get a mortgage and invest their money in real estate in Tempe.
The truth is, the credit score needed to purchase real estate in Tempe has been dropping in recent months and is much lower than many people think it is. For example, since the beginning of the year, the FICO score needed to purchase a home has decreased by ten points. That may not seem like a drastic change but it does open the home buying option up to many more individuals; real estate agents in Tempe are reporting that their clients have obtained mortgages with FICO scores in the low to mid-700 range, allowing many people that don’t think they can qualify for a mortgage to actually get one.
If you have considered purchasing real estate in Tempe but feel that your credit score may be too low to qualify you for a mortgage, you should contact a local real estate agent in Tempe. It never hurts to talk to them about your current financial situation and credit score and see what your options are. You may be pleasantly surprised to find out that you do in fact qualify for a mortgage, allowing you to purchase real estate in Tempe.