"8.3 million first-time home buyers by 2022, or as high as 9.2 million consumers if economic growth exceeds expectations"
Based on a new TransUnion analysis, they expect at least 8.3 million first-time homebuyers by 2022, or as high as 9.2 million consumers if economic growth exceeds expectations. Slowing home price appreciation, low unemployment, increased wage growth and low interest rates are major factors that analysis looked at.
These are some of the major factors delaying a mortgage for first-time home buyers, according to a survey conducted by Transunion.
Reasons consumers reported delaying their home purchase included:
Need a down payment:
Need a more steady job
Home prices are too high
Credit score is too low
First Time Home Buyer Checklist
Credit Report: Make sure your credit score is at least a 630 for the best rates and programs. Some lenders only require a 580 to be approved. Also view your report and make sure there are no derogatory items preventing you from being approved.
Employment: Most lenders like to see steady employment for at least 12 months.
Down Payment: As a first-time home buyer you will qualify for the minimum down payment. Some loans have a 3.5% down payment while many others offer 0% down payment. Also Veterans would qualify for a VA Loan, which is also 0% down payment.
Debt Ratio: The recommended debt ratio is at or below 35% for most lenders. Your debt ratio is calculated as follows:
Monthly Debt: $1,400 (Credit Report Debt-Example:Car payment, credit cards, Etc)
Monthly Income: $4,000
Debt Ratio: $1,400 ÷ $4,000= 35%
To learn more about your credit report and if you would qualify for a mortgage visit valiantcredit.com/book-online and schedule a FREE Credit Report Consultation and Score Analysis.