You Can Do It!! Part 1

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A high percentage of Americans believe that owning your own home is a good thing.  A recent study of 2,000 adults showed that 65% of Americans believe that owning your own home is an accomplishment that would give them pride.  Another study from late 2014 showed that almost 90% of Americans wanted to own their own home.

As desirable as home ownership is in America, many people don’t investigate buying a home because they believe the many myths telling them that homeownership is not within their reach.  Let’s look at the truth here, and debunk some of those myths.

First of all, here’s a quick summary of what mortgage lenders look for when evaluating your loan application:  (1) character, (2) capital, and (3) capacity.  Some people call this this “the Three C’s.”  Let’s look at the myths regarding (1) character today.

When you obtain a loan, the lender wants to trust that you will have the character to repay the loan.  How do they measure your character?  They look at your credit score.  Your credit score serves as your track record, your history, of repaying your financial obligations.  Lenders believe your credit score serves as the strongest indicator of whether or not you will repay your mortgage.  Therefore, your credit score is very important to lenders.

Now for the credit score myth:  A high percentage of Americans believe that they must have a very good credit score to qualify for a mortgage.  What is a “good credit score” anyway?  I just ran an Internet search using “what is a good credit score?”  Answers I received ranged from 660 up to 720.

The truth is, you can get a home mortgage if your qualifying credit score is as low as 620.  The web sites I reviewed put a 620 score in the “poor” to “fair” categories.  The bottom line is you can still qualify for a mortgage when your credit score is “less than good.”

We’ll consider other mortgage myths in my next blog post.  But for now, if your credit score is 620 or higher, and you want to buy a house, just remember, “You can do it!”  If you dream of owning your own home in the state of Georgia, give me a call and let’s discuss it.  Don’t believe the myths.  We might be able to get you into your dream home sooner than you think.

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