Don’t Disqualify Yourself… Did You Know That Over Half of All Loans Approved Have a FICO Score Under 750?

 

FICO scores is a mathematical credit scoring model that was created by the Fair Isaac Credit Organization (FICO). 

Your personal FICO scores is one of the most important numbers to understand in your personal AND business financial life.

The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a  Mortgage in today’s market.

A conditional loan approval is a statement from a lender, asserting that the lender is willing to loan a specific amount of funds to the potential borrower after meeting specific conditions inside their FICO Scores.

Ellie Mae’s Vice President, Jonas Moe recently encouraged buyers to know their options before assuming that they do not qualify for a mortgage:

“Many potential home buyers are 'disqualifying' themselves. You don't need a 750 FICO Score and a 20% down payment to buy.”

So what credit score is necessary?

Below is a breakdown of the FICO Score Distribution of all closed (approved) loans in August from Ellie Mae’s latest Origination Report.

Over 50% of all approved loans had a FICO Score under 750. . . when many potential home buyers believe that they need a score over 780 or beyond  to qualify.

Bottom Line

If owning a home of your own has always been a dream of yours and you are ready and willing to buy, find out if you are really able to obtain a loan approval. 

We understand that obtaining a loan approval is a stressful time for many mortgage borrowers, for that reason, 

my advice for first-time home buyers is to hire a buyers agent to work for you. 

Whether you are thinking about purchasing a home, condo, duplex, or land, our associates in Maxus Realty Group and ReallyNiceHomes.com have the most experienced agents ready to represent the best interest of buyers.

Give us a call at 301-246-0001; we would love to help you make your next purchase.