Skip Hughes on "Financing Leading The Direction in Home Buying."
July 3, 2018 | Skip Hughes
Skip Hughes, Designated Broker | Buyer/Investor Specialist with AGENT509  | Homes & Equity R.E. Estate Group believe that every real estate purchase is led by financing, from zero down to all cash, it is financial considerations that lead to the direction of the financing in making a home or investment purchase.

Therefore discussing the finance subject and being collaborative are where Skip begins each time with his clients.  For example, in those cases where a loan is needed, Skip participates from the beginning with the clients in meeting with a lender.  In Skip's experience, it is very helpful to have a great lender that is on the same page, and Darel Ansley of Peoples Bank is that person whom Skip has turned to for in depth collaboration with clients.  These meetings with Skip, Darel, and home buyers/investors are the chance to really brainstorm, educate, and collaborate!!  And that is just the beginning...want to set up a brainstorm session with Skip and Darel?  Contact Skip at AGENT509 on his cell at 206.909.7272 or at the office at 509.315.3630.

Read the latest blog  post below from our Affiliate Partner "KCM," titled " You DO NOT Need 20% Down to Buy Your Home NOW!"

You DO NOT Need 20% Down to Buy Your Home NOW! | MyKCM

The Aspiring Home Buyers Profile from the  National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that the main reason why non-homeowners do not own their own homes is because they believe that they cannot afford them.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

A recent survey by Laurel Road, the National Online Lenderand FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.
According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.
What these people don’t realize, however, is that there are many loans written with down payments of 3% or less.
Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO®Scores

An Ipsos survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score”is over 780. In actuality, the average FICO® scoresfor approved conventional and FHA mortgages are much lower.
The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724. The chart below shows the distribution of FICO® Scores for all loans approved in May.
You DO NOT Need 20% Down to Buy Your Home NOW! | MyKCM

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but you are not sure if you are ‘able’ to, let’s sit down to help you understand your true options today.
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