A new survey released by Veterans United Home Loans has discovered a rather considerable amount of incorrect assumptions by prospective homebuyers when it comes to acquiring a property.
More than one-third of respondents (34%) were under the impression that they needed a credit score of 700 or higher is required to qualify for a mortgage, while 57% thought at least a 650 score is necessary. Two-thirds of respondents (66%) believed they needed a near-perfect credit to secure the best interest rate, while 63% were under the notion that mortgage rates are higher than they’ve ever been.
As for who sets the rates, 61% thought the government dictated rates and 66% were under the impression the Federal Reserve’s actions were behind rate levels.
“Many prospective buyers are setting their expectations higher than they need to, which can delay or even derail their homebuying journey,” said Chris Birk, vice president of mortgage insight at Veterans United. “The reality is that loan programs are often more flexible than people realize, especially when it comes to credit scores, down payments and interest rates. Understanding what’s actually possible can help buyers move forward with confidence.”
The survey was conducted from March 13-24 by the research and data firm, polling 400 veterans and civilians who intend to buy a home in the next three years.
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