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What consumers don’t know about mortgages can hurt them

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07/01/2016 | Author: Editorial Staff

When FannieMae recently surveyed consumers about key mortgage qualification criteria, only about half could provide answers. While mortgage rates are low and aspirations of buying a home remain strong, homeownership levels remain low, and a mortgage qualification knowledge gap may be contributing.

Consumers in general and, most importantly, renters who are looking to buy a home in the next five years showed a lack of knowledge about minimum mortgage qualification requirements. Of renters looking to buy within five years, 30% did not know what their minimum required downpayment amount would be, and 45% did not know minimum credit-score requirements. For those who did offer answers to the questions, a significant number overestimated the required downpayment and credit numbers.

Of those surveyed by FannieMae, 50% listed REALTORS® among their three most influential sources of mortgage advice, highlighting the benefit of working with a REALTOR®.

Find more information about the survey in the infographic below and at FannieMae's website.

Infographic from FrannieMae about mortgage qualification criteria knowledge

Categories: Research, Buyers
Tags: buyers, buying, mortgages, mortgage, lending

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While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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