Did you know your credit is one of the most important things you can work on when thinking of buying a new home? 69% of all closed loans had FICO scores over 700 in May, 2018 – according to Ellie Mae (a software company that processes almost a quarter of U.S. mortgage applications.) The average FICO score on all closed loans increased one point to 724 in May. The average FHA purchase FICO held at 676 in May.
The average 30-year rate for all loans continued to rise to 4.84% in May, up from 4.79% in April and 4.21% last fall -according to Ellie Mae. If you are thinking of buying a new home, consider connecting with a lender and realtor and locking in your rate now. Rates are expected to continue to rise.
The average loan to value ratio was 89%. That is, buyers paid a down payment of 11% of the purchase price up front and financed the rest. How does your savings stack up?
Once you find the home you want to buy, how long will it take to close? Check with your home-loan-Mortgage lender. The average time to close for all loans remained steady at 41 days for the third consecutive month – according to Ellie Mae’s May report. The process is not as fast as many think (or wish!) … so be sure your REALTOR negotiates enough time for you and your lender to make it happen!
If you have any questions or need recommendations on smart local lenders who provide great customer service and will walk you through the process – just give us a call, text, or email 336-701-JUDY.
Read the full Ellie Mae report –> https://static.elliemae.com/pdf/origination-insight-reports/Ellie_Mae_OIR_MAY2018.pdf