"Would-be homebuyers aren't sitting on the sidelines because they don't want to buy. They're sitting out because they think they can't. And sometimes, it's their credit score that's holding them back. According to a Bankrate survey, 2 out of every 5 (42%) Americans believe you need excellent credit to qualify for a mortgage. That may be why, when renters are asked why they don't own yet, "my credit isn't good enough" comes up often."
"Part of the confusion stems from the fact that the typical homebuyer today does have a fairly strong credit score. In fact, according to data from the NY Fed, the median credit score for all buyers is 775. But that doesn't mean you need a score that high to qualify. Looking at recent homebuyers, a number were able to get a mortgage with scores below that threshold. Data shows 10% of scores were around 660."
""While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single 'cutoff score' used by all lenders, and there are many additional factors that lenders may use . . .""
Many potential buyers delay purchasing because they believe they cannot qualify, often citing low credit scores. A Bankrate survey found 42% of Americans believe excellent credit is required to get a mortgage. Median credit score for buyers is 775 per NY Fed data, but some recent buyers had scores around 660 in the lowest tenth percentile. FICO states there is no single cutoff score and lenders use different strategies and additional factors. Credit score is one factor among many. Prospective buyers should speak with lenders to learn what mortgage options are realistically available.
Read at Boston Condos For Sale Ford Realty
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