For many Americans, buying a home is the biggest financial decision they will ever make. But a new survey from Wells Fargo suggests many prospective buyers may be entering the process with far less knowledge than they think.
According to the bank's 2026 Home Lending Quiz, conducted by research firm Ipsos, nearly seven in 10 aspiring first-time homebuyers said they felt knowledgeable about purchasing a home. Yet when tested on basic mortgage and homebuying concepts, most struggled to answer even a handful of questions correctly.
The survey, which polled 2,012 U.S. adults who have never owned a home but are considering buying within the next five years, found that 75% of respondents answered four or fewer of the quiz's 12 questions correctly. Only one participant answered every question correctly.
For mortgage professionals, the findings highlight a significant educational opportunity at a time when affordability challenges, elevated rates, and tight inventory continue to complicate the path to homeownership.
"Homebuying isn't just a milestone — it's a long-term financial commitment with implications that can last decades," said Serhat Oztop, head of Home Lending at Wells Fargo. "When buyers overestimate what they know, they're more likely to make decisions that cost them time, money, or both."
Closing Costs, Mortgage Timing Among Biggest Blind Spots
The survey identified several areas where prospective buyers demonstrated significant confusion:
- Only 25% knew when they should apply for a mortgage.
- Nearly 90% did not understand what is included in closing costs.
- Eighty-eight percent were unclear about the first steps in the homebuying process.
- Eight in 10 would make a potentially costly mistake when submitting a competitive offer, including sharing a pre-approval letter showing their maximum approved loan amount with a seller.
The closing-cost question proved particularly challenging, with Wells Fargo describing it as the largest knowledge gap identified in the survey.
For lenders and LOs, those findings suggest that many consumers enter the homebuying process without a clear understanding of costs, financing timelines, or negotiation strategies.
Buyers Turning Elsewhere For Advice
The survey also sheds light on where prospective buyers are seeking information.
Most respondents said they rely on friends and family members, real estate websites, online listings, and search engines for homebuying guidance. Only about one-third said they turn to lenders or financial professionals as a primary source of information.
The divide was even more pronounced among younger buyers, who reported relying heavily on social media, influencers, and AI tools for guidance. Older respondents were more likely to seek advice from banks, lenders, and financial advisors.
The findings may raise concerns among mortgage professionals about the quality and accuracy of information consumers are receiving before entering the market.
What It Means
While the survey underscores widespread confusion, Wells Fargo said the results should be viewed as an educational opportunity rather than a warning sign.
Nearly two-thirds of participants said taking the quiz left them feeling motivated, encouraged, or more aware of what they still needed to learn before purchasing a home.
For LOs, the findings reinforce the value of serving as educators throughout the mortgage process, particularly for first-time buyers navigating a market that remains challenging from both an affordability and financing perspective.
"This quiz wasn't about passing or failing," Oztop said. "It was about helping people see where they might be vulnerable — and giving them the confidence that comes from being truly prepared."
The survey was conducted online by Ipsos, among adults ages 18 to 65 who reported some level of financial readiness and expect to purchase a home within the next five years.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
