Most Americans have now arrived at the conclusion that it is a good time to buy a home. Prices have stabilized, and in some cases are continuing to rise (as outlined in two of our most recent blogs: HERE and HERE). That’s the top line analysis from one of the country’s major mortgage creators, but there’s a secondary finding about credit scores that could also have a sizeable impact on Maryland real estate activity. Some would-be Baltimore homeowners would benefit from learning the information – which is actually a bit of misinformation.
The second annual “Wells Fargo Homeownership Survey” is a national survey of 2,016 respondents, and the source upon which last week’s Franklin Codel analysis is based. The excellent news for current and soon-to-be Maryland home sellers is that a whopping 72% of respondents think now is a good time to buy a home. Most Americans also agree that “owning a home remains a vital part” of the American dream – and continues to be a key element in the strength of the nation. (also outlined in another recent blog)
Running counter to that upbeat survey result is the finding that despite the efforts of lenders (and the government) to make credit more available to potential mortgage applicants, two misconceptions are widespread enough that they are “holding many potential buyers back.”
⎫ The misconception that every buyer must have at least 20% for a down payment; and
⎫ A belief that credit scores alone determine whether an applicant will land a home loan