Many consumers have misconceptions about what it takes to qualify for a mortgage. Most believe the requirements are tougher than they actually are, according to a recent Fannie Mae survey.
When asked about key mortgage qualification criteria (such as down payment percentage, credit score, and debt-to-income ratio), roughly half of consumers selected “don’t know” or provided an invalid answer.
“This research suggests there are too many eligible home buyers sitting on the sidelines due to misperceptions or anxiety about being turned down for a loan,” says Steve Deggendorf, director, business strategy for Fannie Mae’s Economic & Strategic Research (ESR) Group.
To be sure you’re ready to buy a home, and ease any anxiety you have about the process, Fannie Mae offers the following five suggestions.