Wednesday, August 7, 2013

First Time Home Buyers Median FICO Scores

-According to, the median FICO score for a first time homebuyer is 720.
-91% of first time buyers purchased their home using a mortgage.  
-60% of repeat buyers using a mortgage had FICO scores of 750.
-46% of first time buyers had down payments of 3-6%.
-46% of repeat buyers put down more than 20%.  
-Many investors, second-home buyers, and international buyers also paid cash.  

It's important to know what your FICO scores are before beginning the process of looking for a home. Make sure to get preapproved with a lender who can run your credit and check your FICO scores. You may have some work to do in order to increase your credit scores. If your credit card balances are too high you may need to pay them off to increase your FICO scores. Once you pay off your credit cards, your lender can submit a rapid rescore to rerun your credit. 

The first question I ask a buyer is "Have you been preapproved?".  If they haven't, then I recommend them to preferred lenders that I have successfully worked with. When you submit an offer you want your offer to be as strong as possible. Submitting an offer with a recent preapproval and most current proof of funds makes you a stronger buyer when competing with other buyers.

If you would like more information about the home buying process or getting preapproved with a lender, call me at (818) 371-3018 or email me at   

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