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. However, homeownership remains a top priority for most, with many considering it a sound long-term investment.
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.
Challenges When Navigating the Mortgage 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 make sure that you have all the information you need, keep reading for mortgage resources available here in Northern Virginia and the Eastern Panhandle.
Mortgage Resources in Northern Virginia and the Eastern Panhandle
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 in Northern Virginia and the Eastern Panhandle:
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.
- Freddie Mac Borrower Help Centers
- Search for HUD’s participating housing counseling agencies in your area here.
Professional Lenders
Reading about these programs and services online is one thing, but we always recommend speaking with a knowledgeable, trusted professional to gain a deeper understanding of all the resources available to you. Let us know here if you’d like our list of vetted mortgage lenders, and we’ll send them right over.
Remember, the key to a successful homebuying experience is knowledge and preparation. By getting the right support system in place, you can turn your dream of homeownership into a reality.