It's a myth, the whole 20% down payment and a 750 Fico score is needed in order to buy real estate. These two old myths are still haunting buyers and sellers. There is no reason to let down payment or your FICO score stop you. If you are thinking of taking the plunge into the housing market, now is the time. Your first step should be to get a loan pre-approval from your trusted banker, or loan officer. Your second step should then be to hire a full service real estate agent. Set yourself up for success, not disappointment or extra stress.
Let's address the 20% down payment myth first. This refers to the down payment only and not additional monies needed for closing costs. When you visit or apply for a mortgage, you will quickly discover that there are several loan programs available for purchasing real estate. If you are a first time buyer, FHA has a 3% down payment program. If you are a veteran, you may be able to buy a home without a down payment at all. If you are a buying a second home, you still may not need 20% down payment. The bottom line is that the banks have access to many loan programs, one might be the right one for you.
The second part of the myth is the Fico score requirements. The Fico score is a score which judges your credit worthliness based on your past and current performances. This means that the older medical collections and any disputed bills may need to be resolved before buying a home. When you apply for a mortgage, the lender will pull your credit report to get your score from the credit bureaus. Just like with down payments, required credit scores can also vary depending on the loan program that best suits your situation. What this really means is that the old myth of a 750 Fico is not true.
The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below provided by Keeping Current Matters, shows the distribution of Fico Scores for all loans approved in February.
Looks like the majority of home loans closed had Fico scores between 600 and 749. There are several loan programs available for you to utilize. Do not let the two old myths stop you from buying your next home, or the first home. Now is the time to act, and get in the home of your homes.
All real estate is local. York County South Carolina has a lot to offer. Whether you want to visit the lakes, or be entertained you will not be let down. York County also has medical centers and higher education centers available. If you are thinking of making a move, give us a call. We have the deep community roots and network to help you find your next home. We can show you all of the beautiful areas of York County.
We would like to invite you to visit ArbieTurnerHomes.com. We specialize in the Rock Hill, Fort Mill, Indian Land and Tega Cay areas of South Carolina. We have made available tours of subdivisions in each city for your review. We are deeply knowledgeable of these areas, which is why you want to choose us for your real estate needs.
We work hard for our customers.
Provided Courtesy of Arbie Turner Homes Keller Williams Fort Mill SC
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