Buyers Will Spend More, But Probably Be Stressed Out – NMP Skip to main content

Buyers Will Spend More, But Probably Be Stressed Out

Aug 19, 2020
How much home buyers will go over budget chart
Senior Editor

Originators take note: you might be able to convince your clients to take out bigger mortgages. A new survey shows almost two-thirds of Americans are willing to spend more for their dream home. A significant number, though, find the whole process stressful.
 
A Lending Tree study says more than 6 in 10 (64%) homebuyers are willing to go over budget for their perfect house.
 
This sentiment is especially true for millennials, as more than 3 out of 4 (76%) of respondents ages 24 to 39 said they’d stretch their budget to buy their dream home. Seventy-four percent of men agreed.
 
“I urge homebuyers to be very cautious about going over budget. Many people underestimate the maintenance costs of owning a home,” said Tendayi Kapfidze, LendingTree’s chief economist. “If you are stretched financially and underinvest in maintenance, it can diminish the value of your home.”
 
Originators should also note how stressful certain groups are about securing their mortgages. Black and Hispanic homebuyers were about twice as likely, at 16% and 18%, respectively, as white buyers (9%) to say applying for a mortgage is the most stressful part of the homebuying process.
 
More than 1 in 10 (12%) buyers said that they didn’t feel their mortgage lender was effective at explaining their available loan options.
About the author
Senior Editor
Keith Griffin is a senior editor at NMP.
Published
Aug 19, 2020
Trump Names FHFA Director Bill Pulte Acting Director Of National Intelligence

FHFA director will continue overseeing Fannie Mae and Freddie Mac while serving as acting director of national intelligence

Jun 02, 2026
Realtor.com Launches AI Home Search Platform Built With Google

New RealAssist tool combines AI, affordability guidance and Google Maps data to engage buyers before they reach lenders

Jun 02, 2026
Another MLS Challenges Zillow In Fight Over Listing Visibility

Realtracs joins MRED in pushing back on Zillow's listing policies, a battle with potential implications for the broader homebuying and mortgage ecosystem

May 29, 2026
Gas Prices Are Quietly Reshaping Homebuyer Affordability

Rocket Money data suggests rising fuel costs are adding pressure to already payment-sensitive buyers as mortgage rates remain elevated

May 28, 2026
MISMO Targets Costly TRID Fee Cures With New Mortgage Fee Standardization Framework

MBA’s standards organization says inconsistent fee naming still drives costly redisclosures and rework, with fee-related cures affecting more than 30% of mortgage loans

May 27, 2026
Zillow-Compass Fight Raises Bigger Questions About The Future Of Mortgage Lead Distribution

Legal battle over private listings and MLS access highlights growing competition to control the homebuyer relationship before borrowers reach a loan originator

May 21, 2026