Wells Fargo (NYSE:WFC) – getting a mortgage is easier than it seems

According to Wells Fargo & Co (NYSE:WFC) people overstate the difficulty of credit acquisition in today’s world. The country’s largest creditor wants to change the perceptions of such Americans regarding home ownership. The results of a few surveys done especially for this purpose reveal several misapprehensions regarding investments in acquiring a home. These misconceptions are majorly related to down-payment requisites and credit account history. Wells Fargo (NYSE:WFC) has made it easier to apply for a mortgage again after the financial bubble.

They have brought the mortgage standards bar down and lowered the minimum credit count needed for loans. Franklin Codel also said that after reducing the credit score needed, which is also known as the FICO score, the company has seen an increase in the number of applications received. The approval rate of these applications has also increased.

The modified mortgage scheme requires 25 percent down payment of the total value of the estate from its clients. Likewise a similar amount is required from those with down payment of 10 percent. Additionally the company is also providing some distinctive mortgage services.

In today’s world where acquiring mortgage should simply require a little research, lenders have made this task a bit difficult.

Therefore the outcome of Well’s survey should bring to light different solutions for potential buyers on getting a subsidy. Franklin Codel, head of Wells Fargo Home Mortgage production said that their surveys have identified a problem and now creditors, nonprofit organizations and real estate executives should help educate Americans about credit scores, debt costs and housing affordability.

Of late, the procedure for purchasing a house has changed and diversified in ways but the survey shows that there are some Americans who still find the entire home ownership process satisfactory. On the other hand, some people however opt to avoid the whole process altogether.A writer named Emily Parkhurst, who normally writes for The Puget Sound Business Journal, explored this further in an article titled why she’s among the Millennials who don’t plan to buy a home in near future.

Wells Fargo (NYSE:WFC) also intends to create awareness among potential purchasers who are interested in getting a house for investment purposes. According to the management of Wells Fargo (NYSE:WFC) borrowers are now repaying debts according to the policy of Consumer Financial Protection Bureau, which means that the time to expand the access to mortgage at low risk has finally arrived. Under the government supporting program, the potential purchaser can receive a mortgage with a minimalistic credit account and pay only 3.5 percent of the purchase cost upfront.

Wells Fargo’s (NYSE:WFC)survey has revealed some obvious misconceptions from the response it has received from its clients. It states that 30 percent of respondents believe that only those people can get mortgages who are earning a huge sum of money. 64 percent believe that they need a well maintained credit account to purchase a household and 44 percent say that the process requires a 20 percent down payment.