Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t. And sometimes, it’s their credit score that’s holding them back.
If you have been dreaming of a new home but are afraid to take the first step, Call Kim at 206-225-8325 for a free buyer consultation. Let's look at your real options together before you count yourself out.
According to a Bankrate survey, 2 out of every 5 (42%) Americans believe you need excellent credit to qualify for a mortgage. That may be why, when renters are asked why they don’t own yet, "my credit isn’t good enough" comes up often. Maybe you’re in the same boat. You look at your score, see it’s not where you want it to be, and assume buying your first place just isn’t realistic right now.
But here’s what you need to know: Even though a lot of people assume you need flawless credit to buy a house, that’s not necessarily the case.
The Reality: You Don’t Need Perfect Credit
So, where does this myth come from? Part of the confusion stems from the fact that the typical homebuyer today does have a fairly strong credit score. In fact, according to data from the NY Fed, the median credit score for all buyers is 775.
But that doesn’t mean you need a score that high to qualify.
Looking at recent homebuyers, a number were able to get a mortgage with scores below that threshold. Data shows 10% of scores were around 660. Which means some were higher than that and some were lower, but the median in that lowest 10th percentile was around that range.
Don't let averages scare you away from your dream home. Call Kim for a market analysis regarding the specific neighborhoods you are interested in—you might be surprised at what is accessible to you right now.
There is No "Universal" Cutoff
So, even if your score isn’t as high as you want, that doesn’t automatically close the door. FICO explains there is no universal credit score you absolutely have to have when buying a home:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”
The best thing to do is to talk to a trusted lender and a real estate expert to see what’s possible for you. Because a portion of buyers are buying with scores in the 600s—and maybe that means you can too.
Ready to Make a Move?
Whether you are looking to buy your first home or sell your current one to upgrade, you need an expert in your corner. If you are selling, Call Kim for a unique marketing plan for getting your home sold for top dollar, so you can move on to your next adventure.
Kim Morgan Storey is the Top #1 Real Estate Agent ready to help you navigate the market, regardless of where your credit score currently sits.
Proudly serving: Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake.
Don't wait on the sidelines. Call Kim today at 206-225-8325!
Serving the Greater Seattle Area: King, Pierce & Snohomish Counties
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