65% of respondents to a recent Wells Fargo survey feel homeownership is the American Dream, an accomplishment to be proud of and something they aspire to. 72% of them feel now is a good time to buy. But the survey also showed that consumers have misconceptions about credit & downpayments as related to buying a home, causing confusion and/or holds them back from moving towards homeownership.
Credit
2/3 of those surveyed believed a very good credit score is needed to purchase a home and 45% of those people considered that score to be 780. ( In general, 780 is considered excellent. Most credit scores fall between 600 and 750 according to experian so talk to your lender before discounting yourself based on score alone.) While good credit is important, it is not the sole criteria lenders use when considering a buyer’s financial picture. Many lenders also take into account credit history, income, assets and debt to income ratio and more.
Downpayment
36% of respondents believed a 20% downpayment was always required. 20% down is a great start and gets you the better interest rate, however, newer low downpayment programs have become available which make getting into a home much easier. Some education is required, but if getting into a home is your goal, these low downpayment programs are certainly something to ask your lender about.
Professionals can help clear things up
While many potential homebuyers may prefer to do their research online before contacting a professional, the case may be that they have misconceptions about both credit and downpayment. Professionals can give expert advice for your personal situation. If homebuying is on your horizon and you have questions, please get in touch with a First Weber agent. You may be qualified and not even know it!
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin andWisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com
Thanks for reading the First Weber Wisconsin real estate & Wisconsin living blog.