According to a recent survey from Fannie Mae, a huge percentage of Americans are overestimating what it takes to secure a mortgage—and those misconceptions about mortgage qualifications could be holding people back from purchasing their dream home.
Fannie Mae’s survey aimed at exploring how well consumers understand the basic requirements for obtaining a mortgage. And what they found were a lot of misconceptions. For example, the average consumer believes you need a 10% down payment and a credit score of 650 to secure a mortgage—when, in reality, you only need a down payment of 3% and a credit score of 580 to qualify. Most consumers (a whopping 77%) aren’t even aware that low down payment mortgage programs exist.
Don’t let your misconceptions about mortgages hold you back from buying your dream home. Getting a mortgage might be more attainable than you originally believed—even if you have a less-than-perfect credit score or a smaller down payment.
When you make an investment, you’re hoping that investment will appreciate in value over time—in other words, that your investment will be worth more down the road (whether that’s next month, next year, or in the next decade) than it was when you made your initial investment.
Well, if you’ve invested in real estate in recent years, chances are that hope has come true.
According to a report from CoreLogic, home prices increased 4.4% year over year as of January 2019, which marked seven straight years of annual home price appreciation in the United States. And, according to the report, that trend is projected to continue, with home prices expected to increase another 4.6% by January 2020.
Chances are your home is worth more now than it was when you purchased it. So if you’ve been thinking about selling, now is a great time to make a move (and walk away with more cash than your initial investment).
Do you know what a home appraisal is, or why it’s so important for you to have? Many people misunderstand this crucial component of the home buying experience.
In a nutshell, an appraisal is a valuation of your home; it’s a way for lenders to ensure that they aren’t providing a mortgage that isn’t worth what the home is worth. Your appraisal must match or exceed the value of your loan, otherwise you’ll run into hiccups.
An appraiser is someone who uses comparable sales in your neighborhood as well as the condition of your home in order to make a sound valuation of your home. They’ll include factors both inside and outside the house.
If an appraisal is lower than the amount you thought the house was worth, there are several options, including renegotiating the deal and paying the difference. If it’s higher, it benefits the buyer. But knowing more about appraisals, whether you’re a homebuyer or seller, can help the whole process go more smoothly. Use this graphic from our friends at Title Source to get started.