Most People Overestimate the Requirements
R.E.A.C.H. Can Help You Understand The Process
According to an article published on June 6th, 2019 by Jessica Guerin1 in HousingWire2
consumers for the most part overestimate the requirements to obtain a mortgage.
The author summarized a survey done by Fannie May of 3647 consumers3. The following shows that
the majority of consumers overestimate what they need to qualify for a mortgage:
- 1. 53% think a credit score of 650 is needed while 580 is high enough for many lenders.
2. 40% of respondents didn’t know the down payment requirements. Of those who did
- answer many said 10% down payment while many programs offer 3% down.
- Only 23% knew of low down payment programs.
3. 61% Of consumers don’t know what the needed debt to income ratio is. Those who did guess
said 40% while many lenders will approve 50%.