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A recent study by Fannie Mae revealed a surprising lack of confidence among consumers about the mortgage process.
There’s good reason to feel a little cautious. In Davidson County, the median price for a single-family home has home prices have risen 47.9% since July of 2020, and median prices in Williamson County have increased 70.4% in that time. Mortgage rates have also climbed, but we’re seeing light at the end of the tunnel on that.
All of this can lead to feeling overwhelmed and unsure of your ability to qualify for a home loan. The good news is there are options available—options you may not even be aware of.
So today, we’ll discuss some different mortgage resources available.
The More You Know about the Process.....
Fannie Mae’s study found that many consumers are unaware of important aspects of the mortgage process, which creates additional hurdles.
Here are the top three challenges consumers face due to knowledge gaps:
- Lack of confidence: Less than half (45%) of consumers would feel confident going through the mortgage process. That number drops to 38% for those who are actively home shopping.
- Overestimating minimum down payment: 90% of consumers either don’t know or overestimate the minimum down payment required for a typical mortgage.
- Misestimating minimum credit score: Only 32% of consumers know the approximate minimum credit score required by mortgage lenders (the FICO minimum score required is 620). The remaining either overestimate or underestimate this number.
The study also found that just 32% are “somewhat” or “very” familiar with low down-payment programs, and 40% are aware of mortgage counseling services available.
To ensure that you have all the information you need, keep reading for mortgage resources available in Middle Tennessee.
Mortgage Resources
Low Down Payment Assistance Programs
You may know that a 20% down payment isn’t required, but how low can you go? In some cases, as low as 0-3% down. Here are some programs available
Mortgage Counseling Services
Housing counseling or mortgage counseling services are also available to help you prepare your finances and get ready for the costs of home ownership.
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