A recent study released by Fannie Mae on what it takes to qualify for a mortgage shows some shocking information according to real estate agents in Gilbert. There are three aspects of qualifying for a mortgage that Fannie Mae addressed and in each of them at least 60% of all Americans had incorrect information or just simply didn’t know what the information was. It’s not as hard to qualify for a mortgage as some people think it is. So, what exactly does it take to qualify?
Real estate agents in Gilbert state that FICO scores, debt-to-income ratio and down payment are the three major factors in qualifying for a mortgage. Where Americans are misinformed, however, is in what they think the appropriate amounts for each of these are.
A look at recently closed loans shows that the average FICO show of home buyers was right around 720; real estate agents in Gilbert state that many of their clients come in believing that a FICO score needs to be much close to 750 to qualify for a decent mortgage but this isn’t the case. The average debt-to-income ratio was a little under 40 and the average down payment for a home was about 20%. Again, real estate agents in Gilbert say that the understanding that their clients have about where they need to be financially and how much money they need saved to purchase a home are incorrect.
Real estate agents in Gilbert explain that although it’s frustrating that so many Americans are unaware of accurate requirements to obtain a mortgage, the good news that goes along with Fannie Mae’s recent study is that people are pleasantly surprised when they do qualify for a mortgage and are able to start searching the real estate market in Gilbert for a home that fits their needs.