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Many buyers aren’t prepared for mortgage process

 

RIVERWOODS, Ill. – July 22, 2014 – A poll conducted by Versta Research and commissioned by Discover Home Loans found that 94 percent of prospective buyers believe they're making a good investment by purchasing a home.

Although 87 percent are confident they will find an affordable home loan, the poll shows many have not done the math to determine their costs. In fact, 63 percent find themselves overwhelmed by the amount of mortgage information available.

Financial readiness
• 83 percent of buyers have been pre-qualified for a home loan

• Why enter the market now? 60 percent of respondents began a home search after at least one of the following took place:
– They achieved sufficient financial stability: 22 percent
– The market became more affordable: 20 percen
– They improved credit scores to qualify for better mortgages: 20 percent
– Mortgage rates and lending options becoming more affordable 18 percent
– They saved enough for a downpayment: 17 percent

Unsure of the cost
Although 87 percent know what type of property they can afford, only 52 percent have actually determined their projected monthly payment

• 41 percent have yet to calculate their down payment

• 48 percent don't know how much their mortgage payment would be if they chose a more or less expensive property

Inundated with information
• Nearly two-thirds feel overwhelmed by the amount of information available on home financing

• For those under age 30, 76 percent reported feeling overwhelmed

• 76 percent of first-time buyers reported feeling overwhelmed, versus 54 percent of those who have previously owned

Key resources
• For help determining whether buying a particular home would be a good investment, prospective buyers turn to real estate agents most often, 66 percent, then to family and friends, 56 percent

• When evaluating mortgage terms and comparing offers, they turn to mortgage bankers most often, 59 percent, then to real estate agents, 49 percent

© 2014 Florida Realtors®

 

Related Topics: Buyer services