Some Millennials are not looking to buy a home simply because they do not believe they can qualify for a home mortgage, according to a recent article by the Wharton School of Business at the University of Pennsylvania.
The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos:
“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”
So what credit score is necessary?
A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.
In actuality, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.
Bottom Line
Millennials who are considering a home purchase should call their lender to discuss their FICO score and income. They may be surprised how much the requirements for a mortgage have eased.
We can recommend several very qualified lenders who would love to discover what you can qualify for! Just reach out to us at (949)395-0960.
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About Jaleesa Peluso, Laguna Beach Realtor
Jaleesa Peluso is real estate agent with Berkshire Hathaway. Jaleesa and her team specialize in Laguna Beach, Dana Point, Laguna Niguel, Newport Beach and surrounding areas. Thinking of buying, selling or renting? Call us now at (949)395-0960!