Skip to main content

New Poll Finds Long-Term Investment an Impetus to Homebuying

NationalMortgageProfessional.com
Jul 23, 2014

Homebuying season is in full-swing and a recent independent poll commissioned by Discover Home Loans shows that 94 percent of prospective buyers believe they are 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 A large majority of buyers surveyed are confident in their ability to secure an affordable loan and obtain the type of property they want. More than three-fourths of buyers, 83 percent, have been pre-qualified for a home loan. Sixty percent of respondents began their home search after at least one of the following took place, including: ►Having achieved sufficient financial stability, 22 percent ►The market becoming more affordable, 20 percent ►Improved credit scores to qualify for better mortgages, 20 percent ►Mortgage rates and lending options becoming more affordable, 18 percent ►Having saved enough for a down payment, 17 percent Unsure of the Cost Despite feeling financially prepared when entering the process, many homebuyers don’t know what purchasing a home will actually cost them. Although 87 percent know what type of property they can afford, only 52 percent have actually determined what their projected monthly payment may be. Forty-one percent have yet to calculate their down payment. Nearly half, 48 percent, don’t know how much their mortgage payment would be if they chose a more or less expensive property. Inundated with Information In general, the majority of those looking to purchase a home find information about the financing process overwhelming. Nearly two-thirds feel overwhelmed by the amount of information available on home financing. This is especially true for those under age 30, of which 76 percent reported feeling overwhelmed. Seventy-six percent of first-time buyers reported feeling overwhelmed, versus 54 percent of those who have previously owned. “The industry is becoming more transparent in an effort to help homebuyers become informed about changes that may affect their process,” said Cameron Findlay, chief economist at Discover Home Loans. “The sheer amount of information can lead to confusion and stress. Those looking to purchase should work closely with their lender and realtor to make sure they are comfortable with mortgage terms and understand the impact a loan will have on their finances.”
Published
Jul 23, 2014
400 Mortgage Loan Originators Caught Trying To Skip School

400 mortgage loan originators nationwide deceptively claimed to have completed their annual continuing education as required by state and federal law.

Industry News
Jan 19, 2022
Infamous Better.com CEO Is Back And Employees Are Upset

After a month-long hiatus or “break” as Garg likes to call it, the CEO is back at the helm of the company.

Industry News
Jan 19, 2022
Capacity Closes $38M In Series C Funding, Surpasses $62M In Total Capital Raised

AI-powered automation platform, Capacity, announced an additional $27 million in Series C funding, closing out the round at more than $38 million.

Tech
Jan 19, 2022
Millennials Are Still Powering The Housing Market

First American Financial Corporation's Potential Home Sales Model for Dec. 2021 revealed that millennial demand is propelling the housing market, thanks to low rates and increased geographic flexibility.

Analysis and Data
Jan 19, 2022
Open Mortgage Adds A Chief Revenue Officer

Scott Harkless will spearhead all wholesale and retail sales functions for the national multi-channel mortgage lender.

Industry News
Jan 19, 2022
Home Builder Confidence Dips Due To Inflation And Supply Chain Concerns

Home builder confidence in the market for newly built, single-family homes fell by one point to 83 in January 2022, according to the National Association of Home Builders and Wells Fargo's Housing Market Index report.

Construction
Jan 18, 2022