Those applying for a mortgage may find themselves bombarded by numbers. Credit scores, interest rates, repayment schedules, closing costs, and more - it can be easy to get these numbers confused and to become overwhelmed. However, these numbers can be boiled down to a few facts that first-time homebuyers should know. Most of these figures were gathered by the Consumer Financial Protection Bureau (CFPB) through their National Survey of Mortgage Borrowers.
- $164,217 – the average balance that homeowners across the country still have to pay on their mortgage.
- Thirteen – the average number of years buyers live in a home, according to a survey by the National Association of Home Builders.
- 77 percent – the number of borrowers who do not apply to multiple lenders. By applying to only one lender, these buyers may miss out on better deals. The CFPB recommends getting estimates from at least three lenders.
- 740 – lenders consider those with a credit score of 740 or more to be the most qualified borrowers. Those with 740 or higher will usually be offered the lowest interest rates.
- 580 – prospective homebuyers wanting a Federal Housing Administration (FHA) loan will need to have a credit score of at least 580 to qualify for a 3.5 percent down payment.
- 25 percent – The CFPB survey shows that a fourth of all first-time homebuyers have no idea what applying for a mortgage entails or what information they will need.