Homebuyers Put Off by Credit Score Jitters
Future homebuyers are not confident of their credit score status when applying for a home mortgage loan. This was the conclusion reached by a recent survey by Experian, as published on RISMedia.
The statistics belie the fear of many home buyers especially first timers. 34 percent of future buyers said their credit scores may be too low to obtain a loan. 45 percent of those surveyed said they decided on postponing the purchase of a home to bide time in improving their credit scores.
Furthermore, 35 percent of future buyers have no idea on how to qualify for a bigger loan deal. 29 percent said that they would purchase a bigger and more expensive house if their credit scores would help in obtaining a larger loan.
The most surprising statistic is that 3 out of 4 buyers have not been pre-approved for a mortgage loan for a home.
According to Experian Director of Public Education Rod Griffin, "Your credit profile is one of the factors that can have a substantial impact on securing a home loan because it is used by lenders as an indicator of financial health. Consumers planning to purchase a home should check their credit scores and reports to see where they stand. From there they can develop a financial plan so they are in the best place to try to secure the loan they desire."
As of January 2016, one of the easiest loans to obtain is from the Federal Housing Administration. Lenders will accept FHA mortgage applications for those applicants with a FICO score of 580, according to a report from TheMortgageReports.com.