Common Kentucky Mortgage Myths Busted!

  1. My credit score or fico score  is too low: Most people’s credit scores are better than they think. According to Ellie Mae, the average conventional loan borrower has a score of 751 and the average government loan (FHA VA, USDA) borrower has a score of 679. Scores typically need to be above 580 to 620 minimum  to qualify.
    Common Kentucky Mortgage Myths Busted!

  2. I don’t have enough for a down payment: Many people still think you need 20 percent as a down payment. It’s just not true. Depending on the loan type it’s possible to put as little as 0 percent down. FHA 3.5% down, VA, zero down, USDA zero down, and  Conforming loans even allow for as little as three percent for a down payment.
  3. I have too much debt: Debt-to-income ratio guidelines allow as high as 50 percent in most situations. This is more buying power than anyone would likely need. We don’t suggest borrowers push the max, but this does allow the ability for consumer debt (student loans, car loans, credit cards) to not prevent home ownership.
  4. The loan process is long and terrible: It certainly can be if you’re working with the wrong bank. A great company can close loans in less than 30 days without constantly nagging you..
  5. I’ll get denied before I close: If you work with the right company, you won’t. We hear horror stories about this happening, and it’s because other companies do pre-qualifications versus pre-approvals. There is a huge difference. Pre-approvals identify any “gotchas” while pre-qualifications don’t

We understand the perceptions associated with getting a mortgage, and we don’t discount these concerns at all. However, your level of stress can either be eliminated or escalated depending on which company you work with.

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Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119
email:          kentuckyloan@gmail.com

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