“It’s not about the money, money, money…”
Seriously, buying a house is not about the money… well in some way. What really matters is your credit score. Most people don’t have $250,000 lying in their savings account, waiting to be spent all at once. You have to think about other needs such as food, energy bills, gas bills, etc.
Let’s look at a hypothetical scenario:
Mark has a steady job and makes about $12,000 in a year. He has been saving for 8 years now and has enough money to buy a house. He finally proposes to his longtime girlfriend and decides now is the time to invest his money in buying a home for sale in Sandy Springs, GA. Since this is his first time, he decides to forego taking out a loan and buys a house straightaway. Now, his savings account is substantially low and he is struggling to pay the bills and house maintenance fees. This leads him to take out a pay day loan. With interests riding so high on this type of loan, Mark ends up in debt.
So, where did Mark go wrong?
When he decided to empty his savings account to buy a house! Of course, there are many other factors that put him in debt but the move he made was completely reckless.
Slaying the Myth
You do NOT need a high FICO score to get a loan. Yes, this is true! You see, most people are daunted by their low credit score and therefore, never look for a house.
The two things that have been scaring people for ages from buying a home for sale in Sandy Springs, GA are the FICO score and the down payment. Let’s have a look at some cold hard facts:
A higher down payment will put you at the front in a competition but if you can’t pay one, then look for other houses
You can get a loan on a low credit score but the interest rates will be slightly high
You might have to put up collateral to get a loan
In other words, you can get a loan but there might be some contingencies on it. Getting a mortgage loan is way better than blowing your entire savings. You have to think about the future costs and that means saving some for rainy days.
Here’s a breakdown for the FICO scores in the past 4 years:
- 2014: 727
- 2015: 730
- 2016: 726
- 2017: 722
- 2018: 726
The FICO score depends on how the real estate market is doing and therefore, it keeps changing.
A down payment as low as 3.5% of the entire loan is acceptable but a few lenders give this chance to buyers. Here’s a breakdown of down payment according to buyer types:
- Most Buyers: 10%
- First-Time Buyers: 6%
- Repeat Buyers: 14%
Here’s a breakdown of how interest rates have fared in the past 4 decades:
- 1970: 8.86%
- 1980: 12.7%
- 1990: 8.12%
- 2000: 6.29%
- Current: 4.52%
Now that you know you don’t need a FICO score of 800 and a 20% down payment, are you eager to buy a house? If you want to find a home for sale in Sandy Springs, GA within your budget, then visit America’s Network Realty Group Inc. Enter just a few details on the type of house you are looking for and the database will provide you with hundreds of listings.