The recently released 2018 Mortgage Consumer Survey provides some real insights into the concerns and experiences of homebuyers between March 2017 and 2019. Some of the facts might even surprise you. Here are the main takeaways.
More Than 1/3 Felt Uncertain
Although most first-time home buyers felt financially ready to purchase a home, many still had serious concerns about buying a home. This included unexpected costs, qualifying for a mortgage, paying too much, finding the right home, and having interest rate increases that could affect their bottom line.
Unexpected Costs Were the #1 Concern
Facing unexpected costs that could drive homeowners into debt was the top concern for first time home buyers. Considering only 50% of home buyers said their mortgage professional had discussed unexpected costs with them, many were simply unaware of the closing costs and maintenance and repair fees.
Few Knew About All Their Renovation Options
According to the survey, 50% of first-time home buyers and 24% of repeat buyers were not aware that their renovation costs could be added to their mortgage. For 61% of repeat buyers who plan to renovate in the next five years and the 28% who have no plans yet, this little tidbit of information could really help them get more relief from using their dedicated savings or going further into high-interest debt.
Only 65% of first-time home buyers were satisfied with the service provided by their mortgage lender. Many felt that they were not given enough information on mortgage or house purchase fees. This is not surprising considering most homebuyers had used their primary lending institution or took lender recommendations from family members instead of shopping around.
Most Maxed Out When Purchasing
With sky-high purchase prices, it’s no surprise that 85% of first-time buyers spent the most they could afford on a home. However, only 68% of repeat buyers maxed out when purchasing their next property.
The Mortgage Consumer Survey really demonstrates the need for more education and guidance among all homebuyers, especially first-time buyers. That’s where we come into play. At the Mortgage Advisors, it’s our job to provide you with all the information you need to make a better-informed decision and find the best mortgage rates for your lifestyle and budget. We work for you, not your lender. Contact us today to learn more about our services and how we can help!