One-Third of Homebuyers Ill-Prepared to Acquire a Mortgage

After several years of depressed demand for homes, buyers are returning to the market in droves. However, many home buyers may be ill-prepared to take out a mortgage, answering basic questions about mortgage information incorrectly nearly one-third (32.5 percent) of the time, according to a Zillow Mortgage Marketplace survey of prospective and current homeowners. For example, one-third (34 percent) of first-time home buyers are not aware that it is possible to get a home loan with a down payment of less than 5 percent. In fact, the number of lenders on Zillow Mortgage Marketplace quoting loan requests with a down payment between 3.5 and 5 percent has risen by 570 percent over the past two years.  Home buyers also do not understand how to secure the best possible interest rate and loan terms. One-quarter (26 percent) of home buyers incorrectly believe they are obligated to close their loan with the lender that pre-approved them and, separately, 24 percent of home buyers incorrectly believe that the best interest rates and fees can always be found through the bank they currently do business with. Additionally, one-third of buyers (34 percent) believe all lenders are required by law to charge the same fees for credit reports and appraisals.  In fact, home buyers should always shop multiple lenders to compare rates and fees in order to find the best loan for their situation.  === Finding a great lender is equally as important as finding a great Realtor. If you are reading this post, you're half way there. Contact me today so that I can provide you with a fantastic lender referral to get things rolling... Carylee Stone Distinctive Properties 858-344-2632 carylee@stonehometeam.com