In the current market we have heard that “cash is king” when offers are submitted for a home. Sellers may prefer all cash sales, but the truth is that most home purchases do involve financing.
According to a study conducted last year by Fannie Mae, a large number of potential home owners lack a basic understanding of what it takes to get a mortgage. The online survey was conducted in the summer of 2015. It found that 40% of all consumers do not know the minimum down payment required for a home and 54% are unaware of the minimum credit score needed to obtain a mortgage.
That is easy to understand since these two figures vary depending upon which lender you choose. In the case of Fannie Mae loans, the down payment is just 3% and the required credit score is 620. However, different banks and lenders have a range of options available to qualify you for a loan and to help you make your down payment.
It is important to explore these questions at the outset of your search for a new home because sellers expect you to provide proof of financing when you make an offer on their property. At Schooner we work closely with a variety of lenders to help you organize your financial information and find the loan package which works best for you. Know your options and the real costs of purchasing a home from the beginning so there are no surprises down the road!