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.”
Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Community
Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021